Need vehicle insurance deductible advice

[yoopermom]

Our family of three drivers lives in MI and currently insure four vehicles, three have full coverage and the old beater only has liability. We pay almost $300/month for this (and it's through the cheapest insurer possible, I've checked around, believe me), which is just killing us. The three fully covered vehicles are worth 8K, 6K, and 5K respectively, and I know many people wouldn't keep comp/collision on them, but we don't have the $$ to replace any of them right now (and nobody would want to drive the plowtruck/beater for any length of time!)

I wondered what most people keep their deductibles at? Ours are:
Comprehensive $100
Collision $250
which I assume are too low, and could be raised?

If it helps any, we have bodily injury 10K/300K, property damage 100K, uninsured motorist 100K/300K.

TIA, I really need the help!
Terri

 

[angierae]

Michigan insurance is weird, but I live in MI and my deductible is set at $500. If I'm less than 50% at fault I don't have to pay the deductible, though. Which was good when the kid rear-ended up at a stoplight a few months ago. My insurance gave me a rental, got my car fixed, and it never cost me a dime. (And our insurance actually went DOWN the next billing period.)

A higher deductible is going to mean a lower monthly payment. Maybe take that savings for a few months until you have the $500 put away somewhere. Then there won't be a huge bite if you need to pay it. But $100 and $200 seem REALLY low to me. Accidents are rare, but I guess it depends on your family's ability to come up with $500 if you need it.

 

[yoopermom]

$500 would be very do-able (and we could actually do up to 1K as a deductible, if it would save us enough). None of us have any points against us, but I've been hit twice in the past 5 years (other drivers fault both times), and have hit hit enough deer to power my own sleigh, so I'm a nervous nelly when it comes to insurance!

Any other advice on deductibles?

Thanks!
Terri

 

[FargoBear]

I would contact your agent and ask for a price breakdown if you were to increase your deductibles to see the cost savings at higher levels.

The majority of auto claims seem to be for windshield damage, and companies will typically pay the $60 or so to have a rock chip repaired at no cost to the client if comprehensive coverage is purchased on the vehicle. So even increasing the deductible to $250 or $500, you won't have to shell out funds from your own pocket for those minor glass repairs.

 

[yoopermom]

The majority of auto claims seem to be for windshield damage, and companies will typically pay the $60 or so to have a rock chip repaired at no cost to the client if comprehensive coverage is purchased on the vehicle. So even increasing the deductible to $250 or $500, you won't have to shell out funds from your own pocket for those minor glass repairs.

Oh, I have a horror story for that one, too. I got a chip in the windshield, called to make an apt. to have it repaired (would have been free, as you said), the shop (only one in the area) couldn't get it in for 4 days, on the 3rd day the temperature dropped below zero, causing the chip to turn into a complete crack! Shop wouldn't take any blame for it, so I ended up sucking it up and paying the deductible for an entire new windshield. Learned my lesson on quick chip fixing in the wintertime! Urgh!

Thanks for the advice!

Terri

 

[TifffanyD]

If you can afford $500 each time you have an accident (if any) then go ahead and go for it. Just remember that even if you save close to that $500 by raising the deductible... there is no guarantee that you will only have to pay that deductible once. So like if 2 vehicles get in an accident in one month... there goes $1000 (if you are at fault). So don't necessarily figure that the money you are banking by raising your deductible will pay for any accidents. You can always change the deductible back down if you have to pay out though.

Full disclosure - We carry $500 for both comp/coll on each of our 2 vehicles (2006 and 2008). But we are prepared to pay this amount if we have to... but of course we don't want to.

 

[Fire14]

If I remember correctly I had mine set at 250 comp and 500 collosion when I lived in MI.

 

[KristinU]

Personally I think it comes down to how big your emergency fund (i.e. liquid cash) is. Like TiffanyD said, if you have the funds to cover $X amount deductible a couple of times over if the need should arise then by all means, raise it. I agree with FargoBear, get a breakdown of the price breaks at the different levels of deductible and go from there.

ETA, I forgot you asked for what people have their deductibles at - we're at $1000 for both comp and collision on both of our two vehicles.

 

[MrsPete]

That is outrageous. I insure three cars, three drivers, and our house for about 45% of what you're paying! Our coverage amounts are simliar to yours, but our deductibles are much higher: We carry $500 across the board.

Here's my rationale:

I have to pay the insurance premiums. That's "for sure money" out of my pocket.

IF I have an accident AND IF it's my fault, I'll end up paying the $500 deductible. That's "maybe money" out of my pocket. In 28 years of driving, I've never had to pay the "maybe money". Tomorrow I might have to do so; it's a risk, but it's a risk I've won for 28 years now. IF I end up paying a $500 deductible, I've more than made up for that by NOT paying all those higher premiums over the years.

 

[RyJMom]

I'd raise the collision on all 3 to $1000. Leave your comp at $100. It won't save you enough to raise it. Call your agent and they can get you some quotes.

 

[Disnydad]

We have $1000 comp/coll deductables on all four of our vehicles.

 

[yoopermom]

Thank you all, for saying what you have, and for the opinions. I agree, MrsPete, MI vehicle insurance (good old "no fault") is ridiculously expensive. When we moved here from WI fifteen years ago I literally wept when I saw how much our insurance payments were going to go up. We also pay house insurance, business vehicle insurance on our worktruck, and business liability insurance. Ouch. I'm lucky to have insurance through my professional organization, which is cheaper than all the "public" ones that I priced out, believe it or not!

I'm going to get quotes for both $500 and $1000.

Thanks again!
Terri