3 ms·

Your deductible should be for the largest amount of cash you can reasonably part with. Statistically you will make it out better with a higher deductible but lo

Your deductible should be for the largest amount of cash you can reasonably part with. Statistically you will make it out better with a higher deductible but lower monthly premiums. I had a flood in my house with a 5k deductible and when we told the restoration company we were going private on the services they magically reduced the price by 50% and we only paid 3k out of pocket. You also have to take into account that trades will jack the prices on insurance claims which is going to be baked into your monthly rate, so if you can go private when possible you can also save money in the long run.

sokoloff 3y ago
When I first bought the house, I went down the curve of deductibles, at each step asking "what's the payback period for the difference in deductible between covered losses that would exceed $50K?" At the short end of the scale, it was in the 5 year range, then went to 8 at $5K, was over 12 at $10K, and over 17 at $25K. That's how I originally settled on $5K. Based on this thread, I just went back and re-priced them (my insurance has a nice-enough online quoter for basic transactions like this). The curve had shortened some and so, while I could pay $25K out of pocket, I upped my deductible to $10K and doubled my personal liability coverage. Starting next month, I'll be saving a little over $500/yr and have a more personal liability coverage to boot. Amusingly, there are coverages that have a $500 deductible. Who the hell wants to even talk to an insurance company over a loss that doesn't significantly exceed a $1K deductible? My insurance discounts include a $495/yr discount for "no claims in the last 5 years". If I had a $500 deductible and had even a $2500 loss, I shouldn't submit it if it would remove that discount for 5 years...

3 ms·

Your deductible should be for the largest amount of cash you can reasonably part with. Statistically you will make it out better with a higher deductible but lo

by __turbobrew__ 3y ago

sokoloff 3y ago
When I first bought the house, I went down the curve of deductibles, at each step asking "what's the payback period for the difference in deductible between covered losses that would exceed $50K?" At the short end of the scale, it was in the 5 year range, then went to 8 at $5K, was over 12 at $10K, and over 17 at $25K. That's how I originally settled on $5K. Based on this thread, I just went back and re-priced them (my insurance has a nice-enough online quoter for basic transactions like this). The curve had shortened some and so, while I could pay $25K out of pocket, I upped my deductible to $10K and doubled my personal liability coverage. Starting next month, I'll be saving a little over $500/yr and have a more personal liability coverage to boot. Amusingly, there are coverages that have a $500 deductible. Who the hell wants to even talk to an insurance company over a loss that doesn't significantly exceed a $1K deductible? My insurance discounts include a $495/yr discount for "no claims in the last 5 years". If I had a $500 deductible and had even a $2500 loss, I shouldn't submit it if it would remove that discount for 5 years...