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Auto Comp/Collision--$2,500 Deductible?
Old 05-17-2016, 03:36 PM   #1
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Auto Comp/Collision--$2,500 Deductible?

I'm a big believer that insurance is not for saving money, but for protecting you against big losses.

So, I'm considering having a $2,500 deductible on the comp/coll for our new Nissan Leaf insurance. I don't yet know how much that will lower the premium.

It would be no fun to have to shell out $2,500 after an accident, but in the long run it's likely to be cheaper.

Thoughts?
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Old 05-17-2016, 03:41 PM   #2
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I agree you should carry whatever level of deductible is comfortable for you, taking into consideration the premium differential. We carry $1K deductibles on our cars.
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Old 05-17-2016, 03:47 PM   #3
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I agree you should carry whatever level of deductible is comfortable for you, taking into consideration the premium differential. We carry $1K deductibles on our cars.
+1

I usually carry $1000 deductible on autos as the price differential (in my case) did not seem that great for a higher deductible.
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Old 05-17-2016, 03:54 PM   #4
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You should see what the difference in cost for various deductions are before deciding.

Years ago, I had a $2000 deductible - as a matter of principle. I don't think I even bothered to find out how much more a $1000 deductible would cost. Then I rear ended someone who came to an abrupt stop at a traffic circle. I immediately lowered it to $1000 and found it didn't cost too much more... cant' remember just how much.
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Old 05-17-2016, 04:00 PM   #5
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I looked at changing deductibles and eliminating some coverages like collision and comp and got some odd results. When I looked at dropping collision and comp on my motorcycle, they increased my liability coverage. It did not remove all the savings by dropping the coverage, but made it less of a change than I expected. This was true for just adjusting deductible. YMMV
yes I will be shopping insurance next year.
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Old 05-17-2016, 05:37 PM   #6
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You wont save much by increasing your comprehensive deductible. I'd opt for a $1000 comp/$2500 collision deductible. Damage to your car caused by vandalism, theft, wild animal damage, falling tree limbs, floods and glass damage are all examples of comprehensive losses.
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Old 05-17-2016, 05:42 PM   #7
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I usually carry $1000 deductible on autos as the price differential (in my case) did not seem that great for a higher deductible.
Me too. My insurance company (USAA) makes it easy to see what these sorts of changes will make in my premiums, and $1K deductibles seems like the best combination of price and coverage. You should definitely investigate the options.
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Old 05-17-2016, 05:53 PM   #8
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You wont save much by increasing your comprehensive deductible. I'd opt for a $1000 comp/$2500 collision deductible. Damage to your car caused by vandalism, theft, wild animal damage, falling tree limbs, floods and glass damage are all examples of comprehensive losses.
I did the same at my agent's recommendation. Reducing deductible on comprehensive didn't change the rate much and made it more reasonable to get a windshield replaced, as an example.
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Old 05-17-2016, 08:12 PM   #9
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I went with an $8000 deductible.

In other words I didn't opt for comprehensive or collision coverage at all. My thoughts were we have the car parked in our driveway with motion activated lights pointed at it all night. It has an anti-theft chip in the ignition. Rarely drive it (currently has spiderwebs on the tires lol).

For a new car? I might go for comp and collision. A $20-25k loss would be a more significant stumble in our FI plan.
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Old 05-17-2016, 08:51 PM   #10
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Given the price of front windows (our 2016 rdx is supposedly 900+), we carry 50 ded on comprehensive and 1000 collision. Given we live in a land of lots of freight haulers we usually need a replacement windows every couple years. Definitely a great ROI on the premium ;-)\
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Old 05-17-2016, 08:57 PM   #11
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I remember someone telling me the avg loss is under $1,000.... so the price between $1K and $2K is not that much since it does not happen that often...


There is a big difference between $250 and $500.....
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Old 05-17-2016, 09:26 PM   #12
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$1000 for my daily drivers. I "had" a $1250 deductible for a few years but my insurance company dropped that option.
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Old 05-17-2016, 09:42 PM   #13
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Don't forget that you should be able to choose full coverage for glass losses even if you choose a higher deductible for non-glass, Comprehensive losses. Glass losses are unique compared to other types of non-collision (Comprehensive) losses because they tend to be high-frequency, low-severity losses. As someone who worked in the auto insurance industry for 23 years (actuarial department), I would suggest you pay the additional premium to eliminate the glass deductible no matter what you choose for the rest of your Comprehensive coverage.
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Old 05-17-2016, 10:37 PM   #14
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$500 for new car. But no comprehension on an old car. It's not worth to go higher than $1000 on a new car.
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Old 05-17-2016, 11:06 PM   #15
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You can also drop Collision while keeping Comp if you like. On my previous car, I dropped the costlier Collision in its last few years but kept the far cheaper Comp with its Full Coverage Glass.
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Old 05-18-2016, 01:00 AM   #16
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My approach is not to pay an insurance company to shoulder any financial risk I can manage on my own. Car deductibles of any size fall in to that category.
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Old 05-18-2016, 04:50 AM   #17
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My experience is that you start seeing diminishing returns on increasing deductibles over $500 for collision and $250 for comprehensive. Sometimes upping collision to $1000 is worthwhile, but not always -- depends on the insurer and the vehicle, most likely. I try to look at the premium difference per month and figure out how many months of cost savings there are in the increased deductible. If the number is high enough, I increase the deductible; if not I leave it be.

For example if I could save $20 a month by going from $500 to $1,000 in collision (25 months to break even on the higher deductible), it's probably worth it since I don't plan to need that every 25 months. If I only saved $5 per month, on the other hand, it would take 100 months (over 8 years) to break even, not including the time value of money, and the deal becomes less compelling.
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Old 05-18-2016, 06:04 AM   #18
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You can get a front glass replacement quote without entering personal information on the Safelite website. My state mandates zero cost replacement regardless of the comprehensive deductible. I still dropped it as two years of premiums would pay for a new windshield and I don't drive much. YMMV.
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Old 05-18-2016, 06:56 AM   #19
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I looked at changing deductibles and eliminating some coverages like collision and comp and got some odd results. When I looked at dropping collision and comp on my motorcycle, they increased my liability coverage. It did not remove all the savings by dropping the coverage, but made it less of a change than I expected. This was true for just adjusting deductible. YMMV
yes I will be shopping insurance next year.
I dropped those coverages on an older car and the same thing happened- it annoyed the heck out of me. I specifically asked the agent if dropping physical damage (comp and collision) would violate the underwriting standards of my plan. He said no. When the savings turned out to be less than the cost of the physical damage coverage, I asked the agent what happened and he said that I was put into a different "tier" and the cost of my liability coverage went up somewhat.

I still haven't figured out why NOT having comp and collision makes you a riskier driver. Heck, I'd think you'd drive a bit more carefully because you know you're on the hook for 100% of the cost if something happens. But what do I know? I'm only an actuary.

For the record, we carry a $1,000 deductible.
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Old 05-18-2016, 08:51 AM   #20
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I
But what do I know? I'm only an actuary.

For the record, we carry a $1,000 deductible.
Athena, you know those darn underwriters don't want to listen to an actuary!
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