Car Insurance

I don't think a high deductible is necessary. If you are healthy, a high deductible health plan combined with an hsa can be a good deal

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ok at the deductible versus premium from a break even standpoint. For example if looking at a $1000 versus $250 deductible and the monthly premium difference is $10, then it would take 75 months for me to break even if I chose the higher premium. Do you think you'll be in an at fault accident within that time frame? Statistically it depends on how much you drive, where you're located, etc. to make that decision. Obviously this excludes the comprehensive deductible but you get the point.

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This is exactly what I tell my clients.

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This is exactly what I tell my clients.

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Glad I am not your client.




The absolute smartest thing you can do is take the dollars you are spending currently. .... ask your carrier what a 5k deductible would be...... then take the "savings" and buy as much umbrella as you possibly can with that money

It's not.
He's misinformed

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We drive relatively new cars (2013 F-150 and 2008 Escalade), so $5k could be a big chunk of money if either of us got in a wreck that didn't total our cars

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Then don't do it.

The rationale is that the higher the carrier sits, the less likely they have for a claim. 5k would be the burn layer where 90% of non total incidents occur. Moving from 250 to 500 or 1000 isn't really getting the carrier away from a potential payout. 5k does, but only on the physical damage. In the event of a bodily injury suit you are going to erode the deductible regardless of it being 250 or 5k.

I pay 650 per year for a 3 million dollar umbrella.

Question. .. what limits do you carry on your underlying coverage? I assume 300k, which is where many umbrella policies attach.

Yeah our underlying is 300/500. No we don't carry commercial auto, but her car and mine are partially used for business, and our financial advisor recommended the umbrella so that in the event something happened, either during normal business or otherwise, that we would have a large cushion in our insurance before we had to cut into our assets like the business. Also, part of the contract I signed with my last broker (oil & gas) required me to carry $1,000,000 liability policy, and an umbrella was MUCH cheaper than a commercial policy.