Roadside Assistance - RACV vs Budget Direct

I currently drive an old 1997 Toyota Camry that I purchased when I was a student. I've been driving it for about five years now and it has done about 260,000 kilometres. Because it is an old car, it is essential that I have roadside assistance in case something goes wrong. Some people have asked me why I don't just buy a new car. The answer is that new cars, e.g. a brand new $30,000 Toyota Camry, will lose about $3000 worth of value per year on average. I purchased my old Camry about five years ago for $7000 and a search on the internet of similar cars reveals that it is worth about $4000 today, so that is depreciation of about $600 per year compared to $3000. Sure, an old car may need to be serviced and repaired more, but I am sure that cost will not be greater than $2400 per year. A cheaper car is also cheaper to insure.

Back to the topic of roadside assistance. I've been with RACV for a few years now. I have recently received a bill from them to renew my roadside assistance. They are charging $95! Seems a little expensive. I did a quick internet search and found that Budget Direct charges $70. However, digging around a little more I have noticed one feature of Budget Direct's roadside assistance package that worried me: they only offer towing of up to 40km in the country. The biggest fear I have with this is, if my car broke down in the country, would the tow truck only haul my car 40km and that is it? What if 40kms is not enough? According to RACV's website, they offer the following if you breakdown 100km from your home: "$750, Taxi (1@$50), Rental vehicle, Alternative transport, Accommodation." The RACV benefit sounds much more reassuring.

Insurance is difficult because no insurance is the same. We are talking about highly differentiated products. It is not like petrol. Petrol is approximately the same and so you can easily compare petrol prices of different service stations according to price per litre. Insurance is not so easy. The key to comparing insurance, I think, is to look at what benefits you really think you need and then trying to find insurance that provides those benefits for the lowest cost.