Is $1000 deductible too much??

Question

I needed to cut my cost for this monthly insurance bill, but i m thinking that the $1000 deductible is too high??

we have never been in an accident, so im just hoping that we never have to use this...any opinions would be great.

Thanks

Answer 1

I always use 5 years as a rule... If the savings over 5 years is greater than the increased cost for one claime, it is a good deal.  For example, if you have a $500 deductible now and will save $700 dollars, you would still net $200 in savings if you have one claim.  Most people have to file a collision claim approx. once every five years.  For homeowners, I use ten years.

That said, if you cannot afford or use a credit card for the $1000 if you have a claim, better to pay a little more each month than to have your car damaged and not be able to fix it.

Hope this helps!

Answer 2

You should look at insurance as protection against castrophy.

With a higher deductible, save the difference in premiums.  That should give you some protection for the deductible but if you never have an accident, you have the money in savings, not down the drain.

Answer 3

Depends on what you can afford.....

Answer 4

Think of what you would actually have to pay if you were in an accident.  If you wouldn'tbe able to pay it maybe you should go for a smaller deductible.

Answer 5

I'm guessing you're talking about auto insurance. Here's an article with a handy spreadsheet to help you logically (and emotionally) decide:

http://www.insuranceyak.com/choosing-a-c...

Good luck

Answer 6

If you have a nice ride the answer is no...if you have a basic ride then yes it is too high...it will probably pay for the car if you submit a claim

Answer 7

It's a high deductible but your monthly payments are going to be lower each month.  Just make sure you have at least $1000 saved  in case you do  get into an accident.  One less worry.

Answer 8

That's the chance you take - pay more for a low deductible or pay less for a higher one.

Answer 9

Is this car, health, house insurance?  

For car insurance, you don't want the deductible to be more than the actual cash value of the car.  For house insurance, $1,000 is good, $2500 might be better, if your house is worth more than $150,000.    For health insurance, that $1K might save you a WAY LOT more than $1K a year.

Answer 10

Do you have a loan or lease on your vehicle? If so, you may want to check to make sure they don't set a lower limit on your deductible. Also, if you have a loan or a lease, they may also require that you fix the vehicle. Is $1000 an accesible amount of money if you need to fix the vehicle in a pinch?

If you don't have a loan or a lease, you'll want to take a look at the value of your vehicle. If your vehicle is an older model, $1000 may be pretty close to what it's worth. Would you prefer to spend that $1000 on repairing your vehicle, or would you like to put it towards a replacement?

If your car would be worth fixing beyond $1000 of damage, you just have to make sure that you're comfortable with the risk you're taking. It's obviously a lot easier to come up with $500 to fix your vehicle, but the premium will reflect that. The insurance company knows that you are less likely to make a claim with a higher deductible than a lower one.

Overall, if you can't afford $1000 at any given time, it may be in your best interest to keep a lower deductible and spread out your risk.

Answer 11

how about trying AmeriPlan with no deductible?

Answer 12

You pay less for the $1000 because you are taking more risk on yourself - and less on the company. You would have to pay more if you had an accident, but if you don't you pay less. It's a gamble, but if it's one you feel comfortable making, go ahead. Like you said, you could always lower your deductible later on.