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Buying a 2006 3.0 petrol - insurance time bomb?

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  • 10-07-2018 11:32pm
    #1
    Andrewf20
    Registered Users Posts: 3,187 ✭✭✭


    Hey folks,

    Im considering a 2006 Z4 3.0 hardtop as a potential next car. Im 38, 14 yrs NCB, no points. I rang my insurance company who quoted an estimate of around 860eu which wasnt too bad. However I wonder what it could be next year or when its > 15 years old.

    On the one hand im hearing insurance horror stories on older cars, yet my 22 old year E36 323i quotes all remained <700eu (with same insurer) over the last few years.

    Its probably an urban myth but I heard that older cars with bigger tax / bigger engines are not getting hit as hard as the government make decent money from the tax bill.

    Whats peoples thoughts?


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    #2
    coylemj
    Registered Users Posts: 25,359 ✭✭✭✭coylemj


    Andrewf20 wrote: »
    Its probably an urban myth but I heard that older cars with bigger tax / bigger engines are not getting hit as hard as the government make decent money from the tax bill.

    What motive has the insurance 'industry' to protect the goverment's motor tax revenue?


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    #3
    TomOnBoard
    Registered Users Posts: 5,109 ✭✭✭TomOnBoard


    Andrewf20 wrote: »
    Hey folks,

    Im considering a 2006 Z4 3.0 hardtop as a potential next car. Im 38, 14 yrs NCB, no points. I rang my insurance company who quoted an estimate of around 860eu which wasnt too bad. However I wonder what it could be next year or when its > 15 years old.

    On the one hand im hearing insurance horror stories on older cars, yet my 22 year E36 323i quotes all remained <700eu (with same insurer) over the last few years.

    Its probably an urban myth but I heard that older cars with bigger tax / bigger engines are not getting hit as hard as the government make decent money from the tax bill.

    Whats peoples thoughts?

    Whatever about insurance, I would have thought that the motor tax on a 3 litre Z4 at nearly €1500 would be a bigger issue. Crazy system!


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    #4
    Andrewf20
    Registered Users Posts: 3,187 ✭✭✭Andrewf20


    coylemj wrote: »
    What motive has the insurance 'industry' to protect the goverment's motor tax revenue?

    Something to do with the government pulling strings with the insurance crowd along the lines of "dont raise premiums on cars that have high tax" - as the owner is giving the revenue a nice generous road tax fee every year and we want to keep it that way.


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    #5
    Andrewf20
    Registered Users Posts: 3,187 ✭✭✭Andrewf20


    TomOnBoard wrote: »
    Whatever about insurance, I would have thought that the motor tax on a 3 litre Z4 at nearly €1500 would be a bigger issue. Crazy system!

    Im used to paying 1080eu. 1494eu/year will be just 8 euro extra per week. Sounds easier to stomach that way. :)


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    #6
    Eggs For Dinner
    Registered Users Posts: 2,948 ✭✭✭Eggs For Dinner


    Andrewf20 wrote: »
    Something to do with the government pulling strings with the insurance crowd along the lines of "dont raise premiums on cars that have high tax" - as the owner is giving the revenue a nice generous road tax fee every year and we want to keep it that way.

    Using that logic, insurers should be offering lower quotes on older cars too, as they have higher tax too than modern vehicles


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    #7
    Andrewf20
    Registered Users Posts: 3,187 ✭✭✭Andrewf20


    Eggs For Dinner wrote: »
    Using that logic, insurers should be offering lower quotes on older cars too, as they have higher tax too than modern vehicles

    I agree, it's a bit of a flawed idea and therefore i suspect it's an urban myth. I guess I'm tying to find some hope for the future. Otherwise ill have to park the idea of buying a car of this vintage. Too much of a worry.


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    #8
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,651 Mod ✭✭✭✭Henry Ford III


    Andrewf20 wrote:
    Something to do with the government pulling strings with the insurance crowd along the lines of "dont raise premiums on cars that have high tax" - as the owner is giving the revenue a nice generous road tax fee every year and we want to keep it that way.


    X files thinking. The government have no input into motor premium calculations.


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    #9
    Eggs For Dinner
    Registered Users Posts: 2,948 ✭✭✭Eggs For Dinner


    Henry Ford III wrote: »
    X files thinking. The government have no input into motor premium calculations.

    Other than making sure they take 5% over every single premium, with none of the risk or admin :cool:


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    #10
    Andrewf20
    Registered Users Posts: 3,187 ✭✭✭Andrewf20


    Yes, I had a feeling it was a bit of a conspiracy theory alright. I'll probably view the car anyway but feel it's a big risk. Thanks for the replys folks.


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    #11
    bonky2018
    Registered Users Posts: 29 ✭bonky2018


    The car Insurance companies dont give a rats rear end what suits the government on road tax .

    The 15 year rule was just another SCAM the car insurance cartel in ireland came up with to screw more cash out of victims
    It paid no attention to reality of government issues like NCT and it isn't based on any proof that older car are involved in more accidents than newer cars .

    If insurance companies could figure a angle on the dangle to make more money charging bald headed people more than long harired people they would I promise you

    The general trend is if you got a car before the 15 year rule they will best i can tell keep to insure the car as long as you have it .However the next victim when the car is say 20 years old and you sell it wont be able to get Insurance so easy on cars older than 15 years old . That could make the selling of the car harder .
    However it seems that brokers can often by pass the 15 year rule and seems not charge that much extra
    However its not for sure every week the rules of the game can change overnight

    The Insurance companies could chose next week to not insure car older than 5 years old .

    I run a 2000 car and it suits me OK good on fuel cheap enough on parts and repairs and Insurance and 1000cc low road tax

    If were doing large distances I would look a 2 liter diesel same vintage from 1993 to 2005 probaly Japanese import as they run forever some get 1,000,000 miles
    The cost of raod tax is irrating but cheap as chips compared to deperesation on new cars

    €1000 a year road tax would be €2.75 a day where depreciation on a 2006 car is probably less than €1000 a year or another €2.75 a day

    Deprecation on new cars often is more than €4000 a year or €10.95 a day

    So your insurance even it went to €700 is still only €1.90 a day

    €2.75 + €2.75 + €1.90 = €7.40 a day less than deprecation cost of often more than €10.95 a day depreciation on new car (not looking at add on costs of road tax and insurance )
    That makes €2710 a year and dropping as the deprecation number drops from higher numbers like €1000 a year and goes down with older age

    The old car might send big bills if clutch gear box engine suspension etc all give problems but its a risk it for a biscuit issue

    iIts all a scam the Irish car Insurance cartel rules you cant plan anything in advace with their wierd screw Irish motorists logic


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