auto insurance - comprehensive deductible

[Maximus96]

just found out that if i decreased the deductible from $500 to $250, the premium will go up $8/6mo, if to $100 it'll go up $21/6mo, if to $50 it'll go up $27/6mo. This is for our Murano. See like pretty much no brain decision to reduce it, but to which should we switch to?

 

[maddogchen]

with deductables you should set it to what you can afford. If you are in a financial position where you can shell out $500 easily for any damages, set it to that. If $500 hurts you than try $100.

If you can afford $1000, thats even better

 

[andy04]

of course go for 27... specially if your wife drives it :laugh:

 

[Genx87]

Depends if you can afford the deductible. Since paying off my car I only carry liability.

 

[JTsyo]

Call an All-State agent?

 

[Lola]

Comp is something you will always have to pay first so I say it is worth it to have a low(ER) deductible.
I have $100 as most things will be more than that, but it is not as costly as having a $50 ded.

It is whatever you feel most comfortable paying should something happen to your car. Keep in mind, 75% of the time, you will be using that to get a new windshield.

 

[Squisher]

When someone hits your car and you're not in it, any damages go on comprehensive. It is amazing the number of claims that get put on comprehensive because nobody can remember backing into something. *wink, wink, wink*

"I'm not sure where it happened. I was parked at three different places last night and didn't notice the damage until this morning." *wink, wink, wink*

 

[Maximus96]

then hell, there's no reason not to go with a $50 deductible since it will only increase my premium by $27 over a 6 month period...

does the rates increase if i make multiple claims on comprehensive?

 

[Special K]

Originally posted by: Squisher
When someone hits your car and you're not in it, any damages go on comprehensive. It is amazing the number of claims that get put on comprehensive because nobody can remember backing into something. *wink, wink, wink*

"I'm not sure where it happened. I was parked at three different places last night and didn't notice the damage until this morning." *wink, wink, wink*

Someone hit my car in my apartment complex parking lot one night and the insurance agent told me it would be filed as an "uninsured motorist" claim. The $250 deductible was nice, but those claims still go on your record, and they will start to affect your premiums if you accumulate more than a couple of them. I think they drop off your record after a few years.

 

[ViviTheMage]

Originally posted by: Maximus96
then hell, there's no reason not to go with a $50 deductible since it will only increase my premium by $27 over a 6 month period...

does the rates increase if i make multiple claims on comprehensive?

27$ over 6 months..........WOW do it....you'd be silly not to.

 

[Jugernot]

If you get a windshield chip that isn't fixable, comprehensive covers a new windshield. I use this almost every year here in Alaska.... we get windshield chips like no where else.

 

[OCGuy]

I am filled with envy right now. I pay $202 per month for $1000 deductibles. Dont drink and drive.

 

[dullard]

I usually do a balance of the costs. Suppose you had a big claim every 10 years. This is what you'd pay:

$500 deductable: $500 + $0 extra*10 years = $500
$250 deductable: $250 + $16 extra*10 years = $410
$100 deductable: $100 + $42 extra*10 years = $520
$50 deductable: $50 + $54 extra*10 years = $590

I'll let you sit for a while and decide which of those four totals you'd like to pay every 10 years.

Of course, things aren't that simple. For example, due to inflation, it is better to pay later when money is worth less than sooner when money is worth more. This means the high payments early on for low deductables make low deductables more costly than shown above.

Also, you don't know if you'll have a big claim every 10 years. What if you had a claim every 5 years? Having more frequent claims makes having lower deductables better. In this case, the numbers are:

$500 deductable: $500 + $0 extra*5 years = $500
$250 deductable: $250 + $16 extra*5 years = $330
$100 deductable: $100 + $42 extra*5 years = $310
$50 deductable: $50 + $54 extra*5 years = $320

As you can see, in the 10 year case, the $250 deductable is by far the best. In the 5 year case, the $100 deductable is slightly the best, but the $250 deductable is still a good choice.

In neither case is the $500 deductable or the $50 deductable the best option. You'd need to have very infrequent or very frequent claims to make them good choices.

 

[Maximus96]

how often does these comprehensive claims stay on the record? i thought it was 3 years. if i make a claim every 3 years for whatever reason, the $50 deductible is cheaper by $20/yr.

 

[dullard]

Originally posted by: Maximus96
how often does these comprehensive claims stay on the record? i thought it was 3 years. if i make a claim every 3 years for whatever reason, the $50 deductible is cheaper by $20/yr.

The length of time that the claims are on record is meaningless to this conversation. You cannot just make a claim every 3 years at your own whim. Well, I guess you can, but you'd be denied. What I mean is: you can't make a claim unless there was damage.

You should have an estimate for how often you will file a claim. The insurance company certainly has made that estimate for you (which is why they priced their products in the fashion that they did). Their estimate is based on your history and the history of similar drivers.

If you realistically think that you'll file a claim every 3 years, then you are probably a bad driver or live in dangerous areas. Either way, then yes, the $50 deductible is slightly better than the other options ($14 better every 3 years than the $100 deductible). And, you'd have to deal with skyrocketting base insurance due to your numerous claims. On the other hand, if you happen to drive well for a period of time (and are lucky that no one near you drove horribly), then you just screwed yourself out of possibly hundreds of dollars.

I cannot say how often you will file. I have no idea about your driving habits or those around you. I personally expect to file a claim every 10 years, so I base my decisions on that.

 

[Maximus96]

Originally posted by: dullard

Originally posted by: Maximus96
how often does these comprehensive claims stay on the record? i thought it was 3 years. if i make a claim every 3 years for whatever reason, the $50 deductible is cheaper by $20/yr.

The length of time that the claims are on record is meaningless to this conversation. You cannot just make a claim every 3 years at your own whim. Well, I guess you can, but you'd be denied. What I mean is: you can't make a claim unless there was damage.

You should have an estimate for how often you will file a claim. The insurance company certainly has made that estimate for you (which is why they priced their products in the fashion that they did). Their estimate is based on your history and the history of similar drivers.

If you realistically think that you'll file a claim every 3 years, then you are probably a bad driver or live in dangerous areas. Either way, then yes, the $50 deductible is slightly better than the other options ($14 better every 3 years than the $100 deductible). And, you'd have to deal with skyrocketting base insurance due to your numerous claims. On the other hand, if you happen to drive well for a period of time (and are lucky that no one near you drove horribly), then you just screwed yourself out of possibly hundreds of dollars.

I cannot say how often you will file. I have no idea about your driving habits or those around you. I personally expect to file a claim every 10 years, so I base my decisions on that.

if the claims are dropped after 3 years, why would the base insurance still go up? What if I make a claim every 4 years? I?d then have 3 years with 1 claim and 1 year of clean, right? I guess I don?t really have a good grasp on how auto insurance works. I?ve been driving for 13 years and never really questioned the amount of payments. i've had 1 claim during this time but for the most part i only had liability.

 

[rh71]

Originally posted by: dullard
I usually do a balance of the costs. Suppose you had a big claim every 10 years. This is what you'd pay:

$500 deductable: $500 + $0 extra*10 years = $500
$250 deductable: $250 + $16 extra*10 years = $410
$100 deductable: $100 + $42 extra*10 years = $520
$50 deductable: $50 + $54 extra*10 years = $590

I'll let you sit for a while and decide which of those four totals you'd like to pay every 10 years.

Of course, things aren't that simple. For example, due to inflation, it is better to pay later when money is worth less than sooner when money is worth more. This means the high payments early on for low deductables make low deductables more costly than shown above.

Also, you don't know if you'll have a big claim every 10 years. What if you had a claim every 5 years? Having more frequent claims makes having lower deductables better. In this case, the numbers are:

$500 deductable: $500 + $0 extra*5 years = $500
$250 deductable: $250 + $16 extra*5 years = $330
$100 deductable: $100 + $42 extra*5 years = $310
$50 deductable: $50 + $54 extra*5 years = $320

As you can see, in the 10 year case, the $250 deductable is by far the best. In the 5 year case, the $100 deductable is slightly the best, but the $250 deductable is still a good choice.

In neither case is the $500 deductable or the $50 deductable the best option. You'd need to have very infrequent or very frequent claims to make them good choices.

Thx for this - I've been far too lazy to work this out until you laid it out so nicely. In my case:

$500 deductable: $500 + $0 extra*10 years = $500
$250 deductable: $250 + $250 extra*10 years = $2750
$100 deductable: $100 + $380 extra*10 years = $3900
$50 deductable: $50 + $402 extra*10 years = $4070

$500 deductable: $500 + $0 extra*5 years = $500
$250 deductable: $250 + $250 extra*5 years = $1500
$100 deductable: $100 + $380 extra*5 years = $2000
$50 deductable: $50 + $402 extra*5 years = $2060

I think I'll stick with the $500 deductible regardless.