75ZT Community

... does comprehensive insurance cease to be financially viable?

Views please?

Good question. I keep my cover going even though the cost is creeping up and is probably more expensive than the car is worth. A few days ago, I had the front windscreen replaced, which had been included in the comp cover. Had it not, I suspect it would have been another bill to fork out. Are you thinking about going 3rd Part F&F?

As far as I am aware, TPFT is only available from a very limited selection of insurers and in most cases is similar in cost to full comp.

Insurance costs have come down considerably, at least for me, this year. I usually pay around £200.00. Having got a quote recently as a test case, I now expect to pay £147.00 or less. This was from SAGA, they have generally been a considerably more expensive option until now. I have been eligible age wise for a few years. I have not been able to get a quote for TPFT at all, not that I would go that route in the event.

I presume this is what you meant?

Yes, VeeKay's insurance renewal is due in roughly six weeks. Book price on the car is a mere £800 so I was wondering whether it was worth the cost of comprehensive cover. If, however, there is very little difference then comprehensive remains financially viable. Comprehensive is likely to cost me £190 based upon a few preliminary enquiries.

Perhaps a quick compare the meerkat asking for TPFT might be revealing.

Not an easy question to answer as what you get for it can differ between insurers. However, for me FC is cheaper than TPFT and it has been for some years now so I tend to opt for it for that reason.

Oh, that is ridiculous. I've just edited my comparethemeerkat quote to include TPFT and the quotes are more expensive than the same insurers quoted me for comprehensive for the first 10 cheapeast. AND, they will not accept a zero voluntary excess for TPFT.

I think that is a fairly conclusive, dare I say comprehensive answer.

Yep, that's been the case for a while now. The theory is that if you opt for TPFT then you are assessed as a higher insurance risk. In summary... actuarial calculations are weird!

I always go fully comp as do my parents, because the price difference is pretty much always negligible. Third party was a lot cheaper when my dad started driving about 30 years ago (give or take a year), but because all the boy racers cottoned on and got TPFT, it's worked out that more cars on TPFT crash than on fully comp (comparatively speaking), so TPFT is more of a risk for insurance companies than fully comp.

TPF&T has always been more expensive for me to, having Dodo on the Insurance policy makes it cheaper, even though she doesn't use it.
Just a window replacement makes Comprehensive Insurance worth it around here.

TPFT is considered as greater risk by some insurers and it loads the quote by simply asking for it. Shop around and you will get a decent FC quote. Some insurers will do policies for the car being laid up if you ask. Just depends on what you are looking for.

The disparity between 3PFT and Comp. seems ridiculous at first sight. But there is a strong ‘actuarial’ reason for it.

Those seeking 3PFT are assumed to be relatively unconcerned about ‘own damage’. Possibly because the car is a cheapie and therefore the driver is more likely to be of less sound character (!), or because of lack of funding (lower socio/economic groups, and I know readers may find this new to them or hard to believe, are perceived as having higher ‘risk profiles’), or as being just temporary and non cost-effective.

To actuarial sensibilities all of this represents a higher risk profile, and so the premium is loaded.

Another point to consider about when a car becomes uneconomical to insure comprehensively is the write-off value v. excesses v. premium.

For instance, if your premium at renewal is, say, £200, and your excess is £50, and in some cases the written-off or stolen and unrecovered value may be as low as £300, then in the event of a write-off you will receive £250. So you have paid £200 to insure for £50! Pretty lousy odds! But that’s not all.

In the above event your ‘annual’ policy is cancelled. When you reinsure your replacement car you start your insurance ‘year’ again from scratch (subject to possibly one or two less years NCD). If you try to insure elsewhere you must declare a total loss. Guess what happens then?
Of course if your excess is greater than £50, and most are considerably more, the figures are even more startling.

For me, TPFT is the cheapest option (Admiral - not had a problem with them yet).

Fully comp would cost more, and when considering the excesses applicable, the extra cost of fully comp over just a few years and the odds of having the car written off in the next few years, it makes sense to stick with TPFT as in a few years (4 at the most, perhaps fewer) I would save enough to buy nice 75!

So the savings in my case will add up to a replacement in a few years, negating the need for fully comp, especially when considering the excesses still involved.

Hmm... no wonder I never see Allianz in the insurance comparison websites.

Bearing in mind that my quotes so far for this coming renewal are less than £200, Allianz just quoted me... £780. and you have to pay extra for third party cover on other cars. Well... that all seems remarkable value for money