Comments on: High Deductible Car Insurance and Emergency Funds

By: Derek Chamberlain

Derek Chamberlain — Wed, 18 Dec 2013 13:01:04 +0000

Worli,

Thanks for stopping by! This is exactly what I did – I determined that for me it wasn’t really a good idea to get a super high premium because I’d have to go more than 7 years without a claim. Pretty unlikely 🙂

As you mentioned, I’d recommend that every one run the number for their own situation. I’d be surprised if a high deductible will really save them money in the long run 🙂

By: Worli

Worli — Wed, 18 Dec 2013 08:04:07 +0000

Deductibles help lower premium as well as helps to lower submitting the amount of claims. But not all deductibles are equal.

So here is a thought, get a quote with a high deductible for your collision and a lower deductible for your collision and see what the difference in your rate is, and then do the same for your comprehensive coverage. My bet is that you will be surprised at how little your premium goes up in relation to you having to pay significantly more if there is a claim.

By: Derek Chamberlain

Derek Chamberlain — Tue, 10 Dec 2013 01:35:18 +0000

Demaish,

Thanks for stopping by! I’m very thankful it was not worse 🙂 I looked at the zero deductible option, but I’d have to have a claim less than every two years to make extra payment worth it. I figured I could go 4+ years without a claim on the average just based on my past 17 years of driving history.

And yes, having a decent EF is very liberating 🙂

By: Demaish @ Borrowed Cents

Demaish @ Borrowed Cents — Mon, 09 Dec 2013 21:27:08 +0000

Good thing you were not hurt. I currently have a $0 deductible because my car is old and I ain’t trying to pay the insurance company 25% of what the car is worth or more in case of something. Emergency fund is one of the best thing that ever happened to me. I always feel at peace because I have a small EF set aside.

By: Derek Chamberlain

Derek Chamberlain — Sat, 07 Dec 2013 13:34:53 +0000

GMS,

Thanks for stopping by and commenting – the points you raise here are great!

You’re spot on with the discount insurers like Progressive and Geico. I have come to the simple conclusion that all insurance companies are the spawn of Satan. I knew going in that they would be a real bitch to deal with, so I came very prepared to get screwed. I think it was this mentality that allowed me to get fairly compensated for my loss. Most folks that don’t take on this perspective will get the short end of the stick.

Thanks for the educated perspective 🙂 I love your blog btw.

By: Green Money Stream

Green Money Stream — Sat, 07 Dec 2013 02:11:18 +0000

Glad to hear that you weren’t injured, which is certainly the most important thing. We actually have a high deductible ($1000) on our car insurance. Of course, I have the emergency fund to cover that amount if needed. My husband works in the insurance industry and one thing that he always emphasizes are that companies like Progressive and Geico will promise to save you “15% or more” but it really comes at an expense. One expense is the hassle you had with the windshield. In his experience, that type of situation is pretty much their method of operation. They made it difficult for you in the hopes that you wouldn’t escalate the discussion to the level you did. A certain percentage of customers will not do what you did and they will profit from that. Another expense (to you) is that you may have a low collision deductible but may not have adequate liability coverage. This means that if you are in an accident where someone else is injured, you may not have the coverage needed to pay the other person’s claim.

I mention this because it is important to make sure you have the coverage that you need or that you are covered in the way you assume you are when you purchase insurance. You may be saving on your monthly bill, but when you actually need to use the insurance you might find that your policy is lacking. And that wouldn’t be good at all from a financial perspective.

By: Mike Camet

Mike Camet — Fri, 06 Dec 2013 15:50:59 +0000

Talk about lessons learned. Had the low deductible on my SUV for 8 years, no accidents. Went with the high deductible and less than a month later: snow storm, accident, there went $1000 bucks!

By: Derek Chamberlain

Derek Chamberlain — Thu, 05 Dec 2013 14:13:45 +0000

Brock,

Thanks for stopping by. As you pointed out, I’m pretty much convinced that high deductible car insurance is the devil in disguise!!! If I had high deductible insurance I wouldn’t feel as bad if the accident were my fault. But, having a deer ram into the side of your car is some kind of freak of nature – it would seriously suck to have a $1,000 deductible right now 🙂

Some people make some of the weirdest driving decisions. It sounds like your 42 year old lady is one of them. Crazy!

By: Derek Chamberlain

Derek Chamberlain — Thu, 05 Dec 2013 14:09:17 +0000

Yeah – I never in 100 years would have expected a deer to smash into the side of my car… They say that 60% of all deer accidents happen in the month of November though. I guess I just added to the statistic 🙂

On the 17 days, I didn’t really put up much of a fuss since I have alternate transportation (although I’m getting less mpg driving my wife’s van).

Thanks for stopping by Dee 🙂

By: Brock @cleverdude

Brock @cleverdude — Thu, 05 Dec 2013 13:27:23 +0000

Wow, that’s crazy that an animal would run right into the side of a vehicle….people always talk about how smart animals are. Apparently they’re not good judges of the speed of moving object, huh? Glad to hear you weren’t hurt – and as far as the insurance goes, it only takes one of these accidents to offset the savings of high deductible insurance for a very long time. I had mine a few years ago when I wasn’t paying as close attention as I should, and a lady who just got her driver’s license for the first time (at age 42) thought that when turning into her driveway it would be a good idea to come to a complete stop first…..wait……and then proceed to turn enter her driveway. I messed up the front end of my car pretty good.