Rexmobile

My insurance premiums are significantly different when going from a $500 to a $1000 deductible. Sorry if dumb question but haven’t had a car in a few years, and getting a Z06 soon. Am I being too cheap going with a $1000 comp/collision deductible?

Also, is $50,000 enough of a property damage limit, or should I go $100,000?

Thanks

CORVETTE007

I have a $1000 deductible and coverages of 250/500/250. With this I'm paying about $280 every 6 months.
I also carry a $1M umbrella coverage ($240 per year).

Liability these days is just to risky to take chances with.

$50000 property damage, depending on what you hit or damage $50K doesn't go far these days.

Dizz

You may also want to add a $1,000,000 liability umbrella policy. Mines cost under $200 per year.

Rexmobile

Thanks. Don't you need homeowners to get umbrella? I don't understand umbrella coverage exactly. Why get a say $1mm umbrella policy, when you already have high liability limits? Why not just get low liablity limits, and get a high umbrella policy?

allanlaw

The umbrella policy usually requires that your underlying coverage have a minimum policy limit - for example, my umbrella requires the auto policies to have a minimum $100/300k limit. The umbrella policy takes over after the underlying policy has reached its limit on a claim.

Dizz

That is correct. You must have certain minimums on your auto policy.

davidfarmer

Insurance is a total waste of money.....UNLESS you get into a wreck! You need to weigh the costs, and how much it is going to hurt your wallet if you get into an incident.

In other words, if $1000 out of pocket is no big deal, then get the high deductible. The savings over the life of the car will likely be worth the risk. However, if an extra $1000 for an unexpected crash is going to really hurt your finances, then the extra bit each month may make more sense.

Life Insurance is the one that kills me. Is it an "investment" (whole life=expensive) or an "emergency safety net=cheap" (term life)......plus, I'll be dead anyway!

95jersey

My feeling is that insurance should only be used when you REALLY need it. It is not something you go to everytime you bang a fender. I NEVER understood why people get $500 deductables? Basically, for the surcharges you get hit with in NJ, you don't want to make a claim on an accident unless the cost is higher than at least a few grand. Anything under a few grand and you will pay MORE in surcharges and raised premiums over the next 3-5 years than if you paid the accident out of your own pocket.

I look at it this way, I am paying anything up to $3000 for an accident, give or take, and if the total accident is $10k+ what's the difference between $500 and $1000 deductable?

SMFCPACFP

Insurance is used to protect you from a catastrophe. So the answer boils down to how much pain can you bare. I am most concerned about the $1,000,000 lawsuit as compared to a $1,000 deductible, so I have $1,000 deductible and high liability coverage..

skudlw

I have $1000 deductible on collision and replacement cost on car. I pay about $1200 per year premium with $300K liability.