Should I have a higher or lower car insurance deductible? ?
Wednesday, October 7th, 2009 at
1:38 am
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BIGjo911 asked:
2 cars one year we were quoted 1049 w a 500 dollar deductible. To save some money we can do a 1000 deductible and its 824. we have money in the bank and usually do not use any insurance. I just wanted some opinions. thank you all !
Thanks all, we are going to go with the higher deductible. If we are hit than we dont have to pay a deductible anyhow even if they are not insured.
Tommy
2 cars one year we were quoted 1049 w a 500 dollar deductible. To save some money we can do a 1000 deductible and its 824. we have money in the bank and usually do not use any insurance. I just wanted some opinions. thank you all !
Thanks all, we are going to go with the higher deductible. If we are hit than we dont have to pay a deductible anyhow even if they are not insured.
Tommy
Tagged with: Car Insurance • Insurance • Money In The Bank
Filed under: 1216
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Amber
If you have enough money to not need insurance, then you should go with the higher deductible.
Basically, the whole purpose of the insurance is limiting your liability, so the question you need to ask is how much risk are you willing to assume.
However, simply using the information you have provided, if you go with $1000 deductible, your insurance would be $225 less per year. If you saved $225 in the bank it would take you about 25 months to recoup the amount of the higher deductible. If you go longer than 25 months without an accident, you would actually come out ahead going with the lower deductible.
Virginia
As the first poster mentioned if you have the cash go with the higher deductible. Really if its 500 bucks are you going to report it to insurance and raise your rates by 500 a year? Most people say no, if its not your fault then it doesnt matter its on the other side.
To me its like heath insurance, mine doesnt kick in unless its over 2000 dollars. It makes it really cheap but I dont have to worry about anything major because im covered. Go in for stitches I just give them a 100 dollar check. But if im really in trouble im covered. So you just need to check your threshold if you are good with 100 bucks worse case scenario then go with that. Everybody will be different. But it saves you money but still covered if you need it.
Allan
The higher deductible will most likely save you money in the long run. However, if you have loans on the cars you need to check the lenders’ requirements. Many lenders will not allow a deductible higher than $500.
Leslie
OK, if you get sideswiped, and have $900 in damage, are you ok with having to chase that guy down yourself?
It’s up to you.
Me, we have money in the bank, but keep that $500 on our cars, for the “hassle factor”. Plus, there are a LOT of uninsured motorists where we live.
Thelma
Try to deal it out of pocket, otherwise insurance rates will go up much more. You can check how quotes will change here – carinsurance.enacre.net