Q&A with 'The Barefoot Investor,' Scott Pape

What type of car do you currently own?

A Mitsubishi Triton Ute, which living in St Kilda, Melbourne, probably seems strange but it’s perfect so I can put my Golden Retriever, who slobbers everywhere, in the back.

Out of all the cars you have ever owned, what has been your favourite?

A 1990 Mitsubishi Magna. I used to call it ‘the magna of death’, it was white, had different panels on it and a coat hanger for an aerial. It didn’t cost me much to buy so the money I saved from owning this car helped me with my future investments.

If you could own any car in the world, what would it be?

An off-white 1990 Mitsubishi Magna – they are great cars.

Has there ever been a time when you’ve been in strife with your car, such as an accident or if it was stolen?

When I was 17 my Dad and I restored a 1966 XP Falcon together. One day my mates and I decided to take it out for a drive down to a mate’s place. On the way there I didn’t realise there was a truck behind us and as we turned a corner it clipped us from behind.

Did you have comprehensive car insurance when the incident occurred?

No.

How much did it cost you and were you regretful? Are you insured now?

I can’t remember how much it cost but I was more worried about Dad and what he would say, it was a fender bender so it wasn’t that bad . Yes I am insured now.

Do you have any advice for other drivers out there?

Insurance is the one thing I don’t mind spending money on because I know it’s worth it. You might have all of your finances sorted but without car insurance one slip up can put them out of whack. If you can afford comprehensive car insurance then get it, just make sure that you read the fine print and you are aware of the exclusions. Also, don’t drive like a ‘bogan’.

What are the three main factors that are important to you when choosing car insurance?

1. No two policies are the same, so make sure you read exclusions on the product disclosure statement (PDS).

2. Choose a reputable insurer.

3. Shop around. If you can afford it, if you have a ‘mojo fund’ (an emergency fund), opt to get the highest excess you can afford so that you premiums are lower.

Scott’s television series, The Barefoot Investor, appears on Channel 10 and CNBC and is currently available in around 12 million homes where he advises people about a range of financial topics such as home loans and investing.