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Originally Posted by RC45
Paying insurance on the "New Price" of a 20 year old car seems a little daft?
Afterall, the car is no longer worth that - seems a little excessive.
Oh well, such are the prices of living in europe...  -- did we mention gasoline dropped in price by about 20c a gallon this last week?  |
Yup, paying full price is stupid and nobody can quite explain why it's done... Meanwhile, the insurance companies profit. But it means a lot of people who could otherwise own a very expensive car as second hand, don't, because the rest of the stuff of ownership is out of their hands... (keeps a lot of kids off the streets with powerful cars, which some consider a good thing).
The insurance companies are usually not that fussy if something goes wrong, such as an accident. You're paid quite upfront for your car. However, over here it's also "obligatory" to have car insurance. Without it, you can't have license plates, and without license plates, you can't drive a car.
I hear many sad situations (on American automotive forums) where the users have ended up in being hit by other people who have no form of insurance... Thus the person with insurance bares the grunt. IMO, insurance should be obligatory because situations like that totally suck... And too many people get away with it too (at least according to the forums).
Gas also dropped here, although not as much as in the states, oh well :p