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What are your opinions on insurance deductibles?

I'm looking for small ways to save money on our monthly expenses and I looked at our car insurance policies. We currently have 500.00 deductibles and I was debating about switching to 1000.00 deductibles because there would be a noticable change in monthly premium. It wouldn't be a significant change each month but enough to free up a little. I also noticed we have towing and rental car addons we are paying for on our insurance and I am definitely going to removed that because the amount we have already paid for that would have paid for the towing an rental if needed. The only two claims we have ever had was me backing into a car 10 years ago and someone hitting my car and taking off 3 years ago. What are everyones thoughts on changing to 1000.00 deductibles? What are your experiences with either?

 
mitchellb

Asked by mitchellb at 12:58 PM on Mar. 15, 2011 in Money & Work

Level 17 (4,346 Credits)
This question is closed.
Answers (9)
  • I keep a higher deductible because honestly, I can afford the $1,000 deductible if I get in an accident. If you can't afford the $1,000 (or at least live without your vehicle for a while), then you should consider keeping the lower deductible.

    Also, are you carrying full-coverage or liability-only coverage? That's another potential money saver that could be an option, depending on factors such as how old and how much the car is worth, whether you could replace the vehicle yourself if YOU caused the accident, etc.
    vicesix

    Answer by vicesix at 1:13 PM on Mar. 15, 2011

  • I keep a higher deductible for purposes of having lower premiums. I'm always thinking that insurance is more for "worst-case scenarious" types of things and honestly, I can easily afford a $1,000-$3,000 deductible.
    Anonymous

    Answer by Anonymous at 3:45 PM on Mar. 15, 2011

  • In my experience it is cheaper getting quotes online. Some of the bigger companies offer discounts when ordering online, because it is less work for them. But to be safe you could compare quotes online, pick the best offer and try a local agency to see if they can match it or do better.

    I recommend this site for online comparing: http://www.quotes-center.com/auto-insurance-calculator

    elize964

    Answer by elize964 at 6:45 AM on Mar. 16, 2011

  • We have a high deductible for the very reason you mention. We did keep the towing. When we have needed a rental it was covered by the other driver's insurance because the accident was their fault.
    elizabr

    Answer by elizabr at 1:13 PM on Mar. 15, 2011

  • We have a higher deductible as well for the same reason. Also, check around for better prices on your insurance. We switched from Progressive to Shelter and our monthly payment is less than half of what it was before for the same coverage.
    scout_mom

    Answer by scout_mom at 1:30 PM on Mar. 15, 2011

  • I agree with anon- you can catch the little things with a small emergency fund. The bigger things are the ones that you'll want insurance to cover.
    Erica_Smerica

    Answer by Erica_Smerica at 4:59 PM on Mar. 15, 2011

  • If you can go with the higher deductible make a special emergency account putting aside the money you are saving until it pays the difference. It's not really a savings if you don't have a plan. I would keep the rental and towing coverage unless you have a service like AAA.
    cafeclubmom

    Answer by cafeclubmom at 7:54 PM on Mar. 16, 2011

  • Switch to a higher deductible to save money.
    tasches

    Answer by tasches at 8:24 PM on Mar. 16, 2011

  • I would keep a higher deductible and put the extra premium money that I save this way in an emergency fund. Many car insurance companies usually give you towing and labor services as an add-on benefit with your car insurance policy. You might need to shop around for a better car insurance deal.

    amber.knight

    Answer by amber.knight at 5:39 AM on Mar. 24, 2011