$1,021 Savings on insurance

moto_italia

It's just math and probability.

If you save $1021 by switching from a $500 to a $2000 deductible, your deductible will increase by $1500 if you have a claim. Thus, if you can go more than 1.469 years ($1500/$1021) without a claim, you're saving money by using a higher deductible.

There's the math. You have to determine the probability of going more than 1.469 years without a claim.

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Kevin

Baconboy

So.. like I said, I'm betting on myself because I'm careful and I take extra measures to protect my car from you people with low deductables.

I might get burned in the short term, but I'm sure to come out ahead in the long run based on my 17 year driving history and my 4 mile back-road commute.

I'd rather keep my 2k in the bank just in case I need it, as opposed to giving an extra $1,000 annually to an insurance company just in case I need it. Since I'm capable of absorbing a 2k hit on short notice, this is a good bet.

Zaggeron

This is the key part and it's true for any insurance. Most of us here will pay more in insurance premiums (house, car, etc.) over the course of our lives than we get paid back in claims.

So the higher the deductible you can go the better off you will be in the long run as long as you can absorb the loss in the short term.

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2010 Platinum Graphite 370z Roadster:Touring/Sport
2013 Subaru BRZ Limited