Save 10-40% on Auto Insurance

Posted: Sat Aug 16, 2008 01:49 am Post Subject:

Let me see if I have this correct.... I increase my deductible from $500 to $1000. Let's say this saves me $200/year in premium. I then pay IDA 12/$500 per month for a year... basically the difference in my deductible. So after a year I have the difference saved up. But in that I put this money in myself, I've not really saved anything. The only difference that I've paid IDA a premium each month so that they can advance me the $500 if I have a loss within that first year.

So how have I "saved" any amount? It's really cost me more the first year. If I simply saved that same amount of money the 1st year and then increased my deductible I'd be in the same position but I'd not have paid anyone a fee for the service. The _only_ way a person would benefit from this at all is if they had an at-fault loss within the first 12 months. Otherewise they would actually _loose_ money.

So basically a person _might_ save a little on their collision/comprehensive premium for the 1st year but it's actually going to _cost_ them a fee to do this.... something not mentioned (wonder why) and the only way this plan could possibly help someone is if they suffer a loss w/in the first 12 months, even then as time goes by they stand to save less and less. Lastly, the only benefit even then is that they are advanced a portion of the difference in their deductible amount. They still need to pay back the difference, along with a service fee.

Lastly, this is really nothing more then a glorified savings account. Did I missing something?

Any lube supplied with this policy?

Posted: Sat Aug 16, 2008 10:16 pm Post Subject:

No, you do not have it correct and you missed a lot, but thats ok its a new concept.

To help you understand how it works:

The CDRP (Collision Deductible Reserve Plan) is a $1000 service contract that will pay the holder $1000 dollars in the event of an accident to pay for a customer's $1000 deductible. Anyone can save money by raising their deductible to $1000 with their insurance company, but most people cannot due to Lease or Auto Loan policies that restrict the customer to a low deductible. Also, in general most people do not have the discipline to set aside $1000 and not spend it. Plus, if a person were to raise their deductible to $1000 and try to accumulate the savings to fund their own account they would have an increased period of risk while their account is funding to the full $1000. With the CDRP the person is covered from the second they sign up for the full $1000 coverage and it covers all vehicles and drivers on the policy. You don't have to have multiple CDRPs for multiple drivers and vehicles.

During the last 9 years IDA has been testing this product and during those tests the Lease and Loan companies without fail have allowed the customer to raise the deductible to $1000 because the deductible is now secured by IDA's CDRP.

You also can purchase the $1000 CDRP at a steep discount, there are 3 different payment plans and all of them have the same coverage and benefits.

Here are the 3 options:

#1. $25 x 40 months = $1000 for a $1000 CDRP no discount

#2. $50 x 15 months = $750 for a $1000 CDRP a 25% discount or in other words you have an accident and we pay you an extra $250 past what you paid IDA

#3. $650 one time payment for a $1000 CDRP a 35% discount or in other words your have an accident and we pay you an extra $350 past what you paid IDA for your CDRP

Now, take into consideration the money that you will be saving from your insurance company and the CDRP will pay for itself in savings and the customer will continue to save on their insurance for the rest of their driving career. And, as an interesting note during the test markets for the CDRP there is still around a 97% retention rate! Even though it has been years later! Why would someone stop using a service that can put thousands of dollars back in their pocket that they would have been spending on required insurance anyway. And if you want, even though this is not an investment or security, if you were to calculate your ROI on the money that you put into the system and the calculate the amount of money that you put back in your pocket that would have had to have spend on insurance anyway over the rest of your driving life, you will be surprised. Even if you just calculate the ROI for the discount on the CDRP. If you believe Benjamin Franklin when he said "A penny Saved is a Penny Earned" you have just earned back literally thousands of dollars from your insurance company with just a small investment. And everyone has to have insurance - it is the law.

Once the CDRP is fully funded or "mature" there are no maintenance fees. And there is no fee to use the service or if there is an accident, the client can "refill" their CDRP at the same discounts they did before. If a person can no longer drive due to medical or certain other reasons the money is refunded in full.

And, no lube is supplied; only savings. : )

Posted: Sat Aug 16, 2008 10:49 pm Post Subject:

But you don't mention what the service fee amount is. You make it sound like a person increases their deductible to $1000 and pays in $1000 and IDA agrees to front the money for free is a loss occures within that first year. Now I've been around the block more then once... I'm willing to bet that IDA makes a profit some how. Am I correct in stating that a service fee is charge? No one seems to want to mention this.

Posted: Sun Aug 17, 2008 09:32 pm Post Subject:

I don't understand why you think the CDRP only covers a loss in the first year. The CDRP is designed to stay with you the remainder of your driving career - which is many years for the majority of insured.

There is a one-time setup fee of $25.00 that is due with the first contribution. There is also a deferred management fee of $325.00 due when the CDRP account is terminated, but, because the CDRP is designed to stay with you the remainder of your driving career, IDA does not deduct the management fee from your CDRP account until the account is terminated - and there is no expiration to your account - you keep your CDRP account as long as you are driving. Over a 30-year driving career, the deferred management fee will average $0.90 per month. And, if you should become unable to drive for any non-criminal reason (e.g. medical, illness, injury, age, etc.) and no longer need the CDRP, the deferred management fee will be waived by the company.

This type of fee is common in many contract. If you cancel your cell phone or switch carriers you are fined anywhere between $200-$400 dollars and that is just for one phone! With IDA we are selling the customer guaranteed savings on their insurance and once the CDRP is fully funded no more money is required. Where as other products are consumable and must be obliged every month or so and cost you money to use, IDA saves you money on insurance that is required by law.

The founders of IDA have been around the block a time or two themselves, they include some of the finest leaders in the insurance industry as well as other business industries. And it has taken 9 years to get this product ready for use in all 50 sates, this is not a start up. I hope that answered your questions well enough.

If you'd like to learn more we are having a conference call this Tuesday, below are the details:

Date: Tuesday, August 19, 2008
Start Time: 09:00 PM Eastern Daylight Time
End Time: 09:55 PM Eastern Daylight Time
Dial-in Number: 1-785-686-2400 (Midwest)
Access Code: 165582

Posted: Sun Aug 17, 2008 10:31 pm Post Subject:

No where do I find a mention of that $25 set up fee. Odd that it's _never_ mentioned.

It's only good for the 1st year because, as I understand it, the customer is paying installments of their deductible to IDA over the period of the 1st year. At the end of that year the customer will have paid their $1000 deductible to IDA out of their own pocket... a glorified saving account at that point.

Why the $325 termination fee? The only reason I can see for a termination fee is if the company is making money over a long duration, i.e. an incentive to keep the contract in-force for a long time. After a year does the person still make any payments to IDA?

I've been working in the insurance industry for about 20 years now and I can't even figure this thing out. Life has also taught me that this usually means the company has something to hide.

You make option 3 sound like I pay a one time $650 and whenever I have an accident IDA pays me $1000. Is this correct... I would pay just a flat $650 and this is it? No additional payment, ever? IDA looses $350, period?

Or is this contract a _yearly_ contract and I'd owe $650 each and every year?

Posted: Sun Aug 17, 2008 11:30 pm Post Subject:

The company has nothing to hide. The $25.00 set-up fee and $325.00 deferred management fee is mentioned in the Collision Deductible Reserve Plan FAQ section:

http://idaleaders.com/FAQ.aspx

Once you have funded your CDRP there are no additional payments. It's not a yearly contract. Should you have an accident 1, 5, 10, 15, 20, how ever many years from now and need to use the CDRP to cover your collision deductible you would just replenish it. If you never have an accident in your driving career than there would never be a need to replenish it.

And, yes, the CDRP is designed to stay with you throughout your driving career - however many years that may be - no matter who your insurance company or agent is, so the company is making money over the long duration and wants to keep the contract in force.

You are correct on option 3 you pay $650 and you will have $1,000 CDRP. I'll assume like most insurance companies they go with the odds that not everyone is going to have an accident and therefore can give a discount on certain plans. My feeling is that in this economy many people will choose plan 1 $25.00 x 40 months with no discount.

Now, for someone that has an older car or does not have teenage drivers there's probably not going to be much of a savings for them - so, that's not really the target market. But, in my case we have three 2007 cars and one 2008 car and young drivers. I've already called my insurance company and I'll be saving about $300/year. We trade in our cars every 3-4 years, so I will continue to see savings each year.

I hope that answers your questions. I don't know what kind of insurance you sell, but if you sell auto insurance see how much your customers with newer cars and/or teenage drives would save each year by raising their deductible to $1,000.

Posted: Tue Sep 09, 2008 09:44 pm Post Subject: The CDRP is now available

The CDRP is now available for purchase. To learn more visit my website at http://www.thecdrp.com

If you'd like to find out more about IDA we are having a conference call tonight.

Date: Tuesday, September 9, 2008
Start Time: 09:00 PM Eastern Daylight Time
End Time: 09:55 PM Eastern Daylight Time
Dial-in Number: 1-785-686-2400 (Midwest)
Access Code: 165582

Posted: Tue Sep 16, 2008 01:46 pm Post Subject:

what is cdrp more abt here

Posted: Tue Sep 16, 2008 05:08 pm Post Subject:

Hi Kiran,

The CDRP is an acronym for the Collision Deductible Reserve Plan which is offered by IDA. Here is information about the plan:

http://www.idaleaders.com/cdrp_brochure.pdf

And, my website is http://www.thecdrp.com