A lesson in going without insurance
I was in the Northern Territory much of the past week. I came across a man whose pride and joy was a classic car which he had spent years restoring. He had it with one insurer with an agreed value of $8,000. He thought this was too low and with a show coming up a few weeks after renewal he decided to get a quotation for a higher sum insured and found Shannons Limited to be the best product and price.
This was all fine but the mistake he made was that the prior policy with the old insurer ran out at 4pm on Friday. He was going to be home all weekend and the car had been safely garaged for 2 years without problem. He therefore thought he would save a couple of days and start the new insurance on the Monday.
Tragically for him, the car was stolen from the locked garage over this one weekend and he then found himself with no insurance and no car. The vehicle has never been recovered. In all likelihood the car was stripped for parts.
This is the the first time I have spoken who has related such a story. On another occasion a caravan was destroyed in a grass fire within 48 hours of the owner deciding not to insure the caravan until their next road holiday. In the worst case, a home caught fire when the owners tried to save 2 weeks of insurance only to lose everything: house, contents the lot.
I really felt sorry for this man. This car was his pride and joy and while insurance would not have brought this particular car back, it would have provided enough money to buy one of equal quality. Theft, fire, storm and any other insured peril can strike at any time and it is simply not worth the perceived saving to go without insurance for even a single hour.
The cost of insurance is insignificant compared to the loss that was sustained by the man who lost his car, or the families that lost a caravan or their home. It is simply just not worth the risk!
On the subject of price, this may appear important at the time you take the insurance out, but remember the true important factors are the quality and breadth of coverage, the financial strength rating or backing of the insurer, and the quality of the claims service. Your insurance broker can assist with advise on all these areas.