$1,021 Savings on insurance
I saw a lot of insurance price discussions here. I'm paying $680 for full coverage, here's how.
Today I was quoted $1,701 with a $500 deductable. I was able to reduce the price to $680 by maxing the deductable to $2,000. ($1,021 savings annually) I had no idea the deductable could have that kind of impact, so I wanted to share. My last claim was in 1998, and I'm a cautious driver (and a careful parker) so I'm willing to bet on myself. If you are in the same category, you could consider this too. This is through Met Life. I use Grundy for my other special cars. A Chevelle and a 1934 Ford cost about $600 combined, small deductable. The catch is that they limit usage. You can joy-ride all you want but you can't commute or run errends. The Z is my driver, so I don't qualify with Grundy. |
On a car i wouldnt max the deductable. On a bike however, i dont (and im pretty sure other riders are the same) plan on getting things fixed by insurence...so i maxed my deductable on the bike...although im paying $675 a year..lol
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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. |
Most finance companies will not let you go over a $1,000 deductible on your car unless is in storage.
Like moto italia said "It's just math and probability". I think the probability will outweight the math. |
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. |
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This is the most important statement in the thread If you financed your Z then the bank is going to contact your insurance company to change the deductible. |
I would rather be safe than sorry, $2k is too high of a deductable for me to be comfortable with.
Lucky for us California people we have the option of buying insurance from Wawanesa so my insurance is less than yours and my deductible is only $500 |
When I was shopping for insurance on the Z I found prices varying between companies from $600 - $2100. This is with the same coverage package at each company. Yes your deductable will vary the price but I've found the biggest variable so far is the company themselves. It's pretty clear that the company that quoted me $2100 didn't want my buisness. Best thing to do is to shop around. I personally believe if you aren't switching car insurance companies every two years, you are paying too much.
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As for the $1,000 limit.. I have a credit union and they rock, but your mileage may vary. I don't see why this is so controversial. Do the math and look at your driving history. It's not every day that I get to make a $1,000 bet on an outcome that I have control over. My odds are 6:1 but that's only because I factored in my teenage years. This is just more incentive to drive safe. I'm just sharing my numbers because a lot of people here are concerned about high costs for the Z insurance. |
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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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I'm picking up my Z in Florida, and driving it back to Massachusetts. I shouldn't be jinxing myself like this.
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wow, that's a high deductible. you realize if you are at fault, your deductible will probably cover a big chunk if not most of the repair. $500 is standard.
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So one day I called the insurance company, clean record however that car was the #1 stolen car in the nation for like 5 yrs in a row. The reason my premium was so high for that type of car. Now we all can be good drivers and care about our cars but you never know what idiot driver is coming or going that might cause and accident, and you be involved in it. Worst case scenario, hit and run. Who pays the deductible? You! Myself would not be betting on luck because $hit happens!;) |
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