auto insurance collision deductible costs

Posted: Sat Feb 28, 2009 03:53 pm Post Subject:

I think by now everyone should relize the economy is sliding and has been for a couple years. Most Americans should be able to have slid a few dollars a month aside to put in their savings for such things as auto insurance collision deductible. For those who have not I would leave maybe a part of the car broken. Small thin gs can add up to a lot of money. Skipping on a new fender or any other eye sore may save your vehicle insurance collision deductible money. You can always replace it later.

Posted: Sat Feb 28, 2009 03:54 pm Post Subject:

#2, then #4, then #1, then #3. But most people have a $500 auto insurance collision deductible so $620 in a checking account would cover that. Also, most people can easily shave off some money from their spending.

Posted: Sat Feb 28, 2009 04:10 pm Post Subject:

Another option is trying to get an appearance allowance or not repairing 'part' of the damage...

to answer your question if i were an 'average' american per your example..most likely i would first ask the shop if they offer any payment plans (many do)...then I would go to #4...ending with #2 I'd likely walk before I resorted to #2...

Posted: Sat Feb 28, 2009 04:11 pm Post Subject:

What I find interesting is that most of the people that I have talked to said that they would leave it broken for a while until they could afford to fix it. I think for most people an auto insurance collision deductible of $500 would break them financially

I'm interested in seeing how everyone responds to this I feel it would be an interesting view on how the economic crunch is affecting people.

Ryan

Posted: Sat Feb 28, 2009 04:22 pm Post Subject:

Ryan, there is no question that the economy has definately affected the way people are repairing (or not) their vehicles....I've never seen so many people take the money and not fix vehicles...of course many times it's not an option some repairs must be made on some vehicles to make them driveable at all....there also has always been a pretty good percentage of folks that struggle to come up with their auto insurance collision deductible...even prior to the current economic crisis....many (unfortunately) end up leaving their fully repaired vehicle set at the shops for months until they get the money....also I think this is the reason many shops have adopted payment plans...one of the bigger (and wiser) shops I work with routinely many years ago partnered with a finance company....and can get the deductible financed thru these finance companys for the owner, granted the interest rate is probably nuts....but when you're stuck you're stuck...and the majority of these poor folks can afford to pay 75 a month for a year to repay their 500 deductible to the finance company.

Posted: Sat Feb 28, 2009 04:27 pm Post Subject:

The shop payment plan is a good idea. I still would leave a part of the car broken if I had no other option. As long as it was running good and it was not a safety issue then it would get you to work so that you could save the extra money to finish the repairs. One lesson we all need to learn from the fall of are economy is to get a little savings back. I know it can be rough cause I have been through it enough but shaving a little off here and there really can help build a little nest egg for emergencies.

Posted: Sat Feb 28, 2009 04:44 pm Post Subject:

you are 100% on target fire...and I'd guess that 99.99999% of the time, there is something you are wasting money on every month that can be put back even if it's 5 bucks a week...that is something to start with.

Posted: Sat Feb 28, 2009 04:53 pm Post Subject:

Life can teach you this lesson fairly quickly. I just learned it myself a while back and believe me when the wheels started turning I found all kinds of ways to start a little savings. It stunk watching the savings go down the drain after being hurt but it got to be interesting when finding ways to rebuild.

Posted: Sat Feb 28, 2009 04:58 pm Post Subject:

if it's 5 bucks a week

Posted: Sat Feb 28, 2009 05:13 pm Post Subject:

I know that the current economy has definitely impacted the spending in my household. Especially where our vehicles are concerned.
When I was growing up my Dad worked on our cars, but my husband just doesn't have those skills or the patience to do that. So we haven't taken his car to a garage and it's problems just get worse and worse - and will continue to until it dies: I'm betting! - We have plans to get a new car, but it's just not in the cards right now and we should make his car hold out as long as possible!

So I think it's important to get your car fixed if you're in an accident! If you don't, you'll end up with an even bigger problem (no transportation!)
As for how I'd pay... I'd probably use a credit card [I know it would end up costing me more in the long run, but it would solve the immediate problem.]

Has anyone heard of the new company IDA? I've heard a little bit about it and it sound like they'll help you set up an account that is meant specifically to cover your auto insurance collision deductible.
I think that's a good idea for most people because a lot of people just don't have the discipline to save that kind of money - so if it were less liquid you'd leave it alone - and then you'd have it when you needed it.

So Ryan - it might be a little late, if you've already been in an accident, but it would be a good idea for next time.