Last edited by LifeInShadesOfGrey; 19-08-2013 at 15:52.
In regards to the OP, we have a small
Savings. We have been a bit savings slack the last few months so I need to start saving more I think.
As a perfect example why everyone should at least have third party property:
A friend rear ended one car with their $1k car causing the car in front to rear end anothee car and that one into another. He was liable for the damage of 3 cars (not including his own) and if he didn't have third party property he would still be paying off the $100,000+ for cars that aren't his. Instead he only had to pay the $1500 excess and his insurance covered the rest.
>>looks like a 'do you have insurance? Do you understand how insurance works?' spin off thread is needed
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and to answer the OP - yes we have savings, three modest accounts in the kids' names. and a small 'house reno fund'
In Tasmania, when you pay to register your car, part of that payment goes towards what we call MAIB. MAIB insurance covers the OCCUPANT of the other vehicle for any personal injuries as a result of a car accident that is YOUR fault. It does NOT, in any way, shape or form, cover the car of either party.
I assume this goes for all states and territories, as far as I know, it is compulsory everywhere.
What is NOT compulsory, is CAR insurance, whether it is third party, fire and theft or full comprehensive insurance. The ONLY way to cover ANY car for an accident, is to take out some form of car insurance, it will never be done automatically for you.
If you are in an accident, that is your fault, and you are uninsured, you WILL have to pay back the insurance company of the other party. Yes, they can claim on their own insurance (assuming they have full comprehensive insurance), and have their car fixed/whatever. But YOU, as the uninsured, will have to pay back THEIR insurance company. They need to be paid back by someone for the costs of the accident.
If neither party is insured, or the other party only has third party insurance, then you are still expected to pay the costs of having their car fixed. If you do not, they can, as far as I am aware, take you to court over the matter. Though I am a little iffy on that, but it makes sense logically.
Bottom line is, if you don't have some form of car insurance, you're being incredibly irresponsible.
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