HarrierRX300

I need some advice. Should I raise my deductable from $500 to $1000? I hardly drive my car now with the gas prices. Plus, I only drive it occasionally on the weekends. That should bring my insurance down right?

BBLexus

I have $1,000 deductible - it depends on how you feel about insurance - the more you pay for your premiums you should be expecting something more to more likely happen. And keep in mind if you have a higher deductible, you will be responsible for all expenses up to $1,000.
Here's an interesting scenario. I moved back to Texas from Minnesota. Now you would think insurance would be higher in MN due to the snow, slippery roads, etc. However, due to the high number of uninsured motorists and unsafe drivers, my insurance is higher in TX. What a scam - while my driving record hasn't changed - the cost his higher due to the mistakes of others.

salimshah

How much will you be saving in premium? You should work out the time after which you will be ahead.

We are talking at fault ... un-insured and other party at fault is a different case.

Minimum accident will cost you $500 (if the color comes of the bumper). Typical non -serious accident will be $750~$2000.


BBLexus ... that is exactly how the insurance works, by looking at the pool [locale and drivers and claims]

Salim

BCP43002

It depends on what you can afford and how likely you will have a claim. Doubling your deductable will not half your premium. Ask your agent what the difference would be. I have a $250 deductable on all 5 cars on my policy as I work in a high crime area.

HarrierRX300

Thanks everyone... I hardly drive the RX these days. My new job gave me a company car so I haven't taken my own cars out that frequent. I do, however, take each car once a week for a short errand just to lubricate the oils and things.

My confusion is currently I'm at $500 deductible paying about $800/6 months... If I raise it to $1000, my 6 months should be a lot less? I live in a pretty safe area and I garage my baby all the time. I don't expect any accidents (knock on wood) since I drive it maybe twice a month? I do regularly trickle charge the battery.

What are your thoughts? I could afford it, but it looks like a waste of money!!

YoshRX300

I'm at $1000 deductible paying $800/6 months, but thats with FULL Liability and FULL comp. If your car if fully paid off, you can get rid of FULL comp and FULL Liability right? If so then this will bring your insurance payments down by alot of $$$.

HarrierRX300

car's paid off. Should I still get full coverage to protect myself? I live in california...

YoshRX300

If you dont really drive it as often, I just see this money being wasted. But then again its better to be fully protected incase of the worst. I use GEICO and you can do a preplanning on their website to see if it works out for you. Or you can call your insurance co. and see if they can work something out for you to your benefit.

salimshah

Please talk to your agent to understand what covers what..
Comprehensive
Liability
un-insured-under-insured.
At Fault ... this is generally where the deductible makes a difference [highest risk and payout for the insurance company based on number of accidents]
Other party at fault


Also what premium you pay is not the important thing ... it is how much you save between the options. [How much you pay is important in choosing company A vs B and also the rating of the company]. Since the insurance is mandated by the state, the state routinely publish complaints etc.

Salim
ps: There are problems associated with occasional short driving trips. lets leave them for another thread.

smerre01

A lot of great advice here on the topic... I have only one thing to add in there. I actually called my State Farm agent and had my 2005 Tundra DC XSP listed as a recreational vehicle since I don't drive it that often. It really did decrease the premium in doing so. There is no further risk/exposure by doing this either. If the vehicle is in an accident on the one day every month or two I drive it, it is still covered. Just a thought.

Raoul

You drive your car(s) on the weekends just to lube them?
Your ins man loves you and the tax man loves you too.
Why not just sell what you don't need?
Money in the bank doesn't depreciate as fast as vehicles do.
My three cost 90k and are now collectively worth about 28k.

The RX is nice but, it's going to a long, long time before Barrett-Jackson rolls one across the floor for an opening bid.

HarrierRX300

Correction on my part. I'm paying $434/6 months. I called State Farm and they said I can drive 7500 miles and I'll be paying $340/6 months. I did increase comprehensive from $250 to $500. I guess it could be considered as a recreational vehicle.
Much thanks guys...

Oivey2000

I work for State Farm (claims adjuster). Bottom line is to ask yourself if you could afford the extra $$ if you had a loss and had to pay the first $1000 as opposed to $500. Then, ask your agent what the difference in premium would be. Personally, I carry a $500 collision deductible because the difference between $500 & $1000 was not that much. Also, even though your car may be paid off, I would caution against dropping collision and/or comprehensive coverage as long as your car still holds sufficient value. Lexus vehicles tend to hold their value quite well, though. If you wind up paying more in premium that your car is worth, then it might be worth it to consider dropping those coverages. The most important coverage, however, is liability. Don't skimp there. Good thread!

sktn77a

iTrader: (2)

I have a 1999 RX300 with full coverage and $1000 deductible - I pay $234 every 6 months in North Carolina (I have 5 cars with State Farm so I get a multicar discount). I also have a 2 month old 2008 IS250 with the same coverage for $320 every 6 months. The BMW and Prius are between $250 and $300 every 6 months. If you have more cars than drivers, you can get an "occasional use" policy. Remember, though, your insurance covers you as well as all the other clowns on the road out there so I wouldn't remove the collision or comprehensive coverage.

(In case you're wondering, my 18 year old son drives a 10 year old Geo Prizm - naturally, it's the most expensive car to insure - twice as expensive as the others!)

salimshah

Most of the confusion comes from terminology. Like here .. the premium is not for the 10 year old Geo Prizm (which you son drives) .. it is for the liability of your son causing damage to other people and property. A small portion of the premium goes towards covering the Geo Prizm. For fancier/sportier car the premium goes up but then again it is based on likelihood of causing damage to others.

Salim