- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Car Insurance
Posted on 1/5/16 at 6:28 pm
Posted on 1/5/16 at 6:28 pm
Quick question.
Is it financially smarter to have a higher deductible on your car insurance policy, which translates to a much lower premium, if you're financially stable and can easily cover the deductible if needed?
I feel as if I'm throwing money away by paying a higher premium just to have a lower deductible on something I never use. Everyone goes to the doctor every year (hopefully) so I understand the reason why a lower deductible on health insurance is desired, but no one (hopefully) gets into a car wreck every year.
Is it financially smarter to have a higher deductible on your car insurance policy, which translates to a much lower premium, if you're financially stable and can easily cover the deductible if needed?
I feel as if I'm throwing money away by paying a higher premium just to have a lower deductible on something I never use. Everyone goes to the doctor every year (hopefully) so I understand the reason why a lower deductible on health insurance is desired, but no one (hopefully) gets into a car wreck every year.
Posted on 1/5/16 at 6:34 pm to Rico Tubbs
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
Posted on 1/5/16 at 9:55 pm to Rico Tubbs
quote:
Everyone goes to the doctor every year (hopefully)
I haven't been in years.
I look 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.
Posted on 1/5/16 at 11:23 pm to GoldenD
quote:
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.
This is exactly what I tell my clients.
Posted on 1/6/16 at 1:04 am to CherryGarciaMan
quote:
This is exactly what I tell my clients.
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
Posted on 1/6/16 at 1:04 am to CherryGarciaMan
quote:
This is exactly what I tell my clients.
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
Posted on 1/6/16 at 1:06 am to GoldenD
quote:
For example if looking at a $1000 versus $250 deductible and the monthly premium difference is $10
It's not. So quit supplying BS hypotheticals
Posted on 1/6/16 at 11:30 am to Mr.Perfect
A 5k deductible? I didn't even realize that was possible on car insurance- what's the rationale behind that high of a deductible? We have an umbrella policy already because my wife owns a business- our current deductible is $500 and I always figured that was pretty safe. The jump up to $1,000 was something like $10 discount for both cars. 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
Posted on 1/6/16 at 12:59 pm to CherryGarciaMan
quote:
It's not.
He's misinformed
Well considering I carry a 5k deductible I would say I know what I am talking about
Posted on 1/6/16 at 1:07 pm to LSUGUMBO
quote:
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
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.
Posted on 1/6/16 at 1:11 pm to LSUGUMBO
quote:
We have an umbrella policy already because my wife owns a business-
Meaning she carries commercial auto and an umbrella on top in the name of the company?
Posted on 1/6/16 at 1:26 pm to Mr.Perfect
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.
Posted on 1/6/16 at 2:14 pm to Mr.Perfect
No one has $5,000 auto deductible. That makes absolutely no sense.
$500 is what I would recommend, since in automotive industry, I have asked the question multiple times, and from others, that is usually the best 'mixture' of not high premium but not huge deductible if you ever need to pay it. GL
$500 is what I would recommend, since in automotive industry, I have asked the question multiple times, and from others, that is usually the best 'mixture' of not high premium but not huge deductible if you ever need to pay it. GL
Popular
Back to top
Follow TigerDroppings for LSU Football News