should I increase my collision deductible?

[Zillionaire]

I have a new car (worths $25K) with $500 collision and $500 comprehensive deductibles. Is it worth to raise the deductibles to $1000?

[Inkstain82]

Originally Posted by Zillionaire

I have a new car (worths $25K) with $500 collision and $500 comprehensive deductibles. Is it worth to raise the deductibles to $1000?

Do you have the cash to cover the deductible in case of an emergency?

If so, then yes.

[kork13]

Originally Posted by Inkstain82

Do you have the cash to cover the deductible in case of an emergency?

If so, then yes.

I totally agree, provided that you have the money to:
a) cover any smaller repairs that don't touch the $1k min. for a claim; and
b) cover the $1k deductible

Yes, it's a calculated gamble. However, you will generally come out ahead if you can keep a higher deductible.

[responduser]

Originally Posted by Zillionaire

I have a new car (worths $25K) with $500 collision and $500 comprehensive deductibles. Is it worth to raise the deductibles to $1000?

If you can afford it easily or you want more coverage, then no problem. Go ahead.

[maat55]

I have mine at 1k. Over time you will easily save the extra 500.00 and more, if you are a safe driver.

Find your break even point.(how long it takes to save 500)

[sweeps]

Originally Posted by Inkstain82

Do you have the cash to cover the deductible in case of an emergency?

If so, then yes.

What if OP only saves $1 every 6 months by switching to a higher deductible? Then OP will be making a bad deal.

As with all insurance questions, it's important to find out how much the change in coverage will cost vs. the benefit.

[Inkstain82]

Originally Posted by sweeps

What if OP only saves $1 every 6 months by switching to a higher deductible? Then OP will be making a bad deal.

As with all insurance questions, it's important to find out how much the change in coverage will cost vs. the benefit.

Yes, my answer was a bit simplistic.

[Car Insurance Guy]

I have a new car (worths $25K) with $500 collision and $500 comprehensive deductibles. Is it worth to raise the deductibles to $1000?

I like Kork's response. It's all about the gamble. If you're a good driver and don't have too many incidents, it's probably worth it. Over time you'll save the premium during each policy period and make back that $500 difference in deductibles. This assumes you don't have a comp or collision claim over 500 bucks in the interim.

I'm a big fan of high deductibles. I'm sure many would agree on this forum - Insurance should be there for the big risks like cancer, totaled cars, and the like. Your emergency fund should be sufficient to cover the minor things like $1K deductibles. Don't give those companies any more than you need to. Now go be a safe driver

[Zillionaire]

I've been driving for almost 10 years and never have had an accident. The insurance agent says that $750 and $1K doesn't make any different so I go with $750 instead.

Here's my bonus question for you guys. Let say, last year I never have any claims on my insurance, are they going to lower my premium for the next year. I hate to pay extra money for the 6 months premium so I choose to pay for the whole year

[tn2008]

American insurance companies don't reduce the premium even if you don't claim any insurance in the previous year. Not sure what happens in U.K.

[sweeps]

Originally Posted by Zillionaire

I've been driving for almost 10 years and never have had an accident. The insurance agent says that $750 and $1K doesn't make any different so I go with $750 instead.

This was exactly my point above. Choosing a higher deductible doesn't necessarily affect your premium that much. Why raise your deductible if your premium savings is minimal or non-existent?

Originally Posted by tn2008

American insurance companies don't reduce the premium even if you don't claim any insurance in the previous year. Not sure what happens in U.K.

Not necessarily. My premium has gone down some years. Not by much but it did go down. If I had an accident, that surely wouldn't have happened.