No deductible auto insurance

Posted: Wed Feb 18, 2009 11:27 am Post Subject:

Well, Patrick, the idea of a no-out-of pocket policy is obviously tempting but at the same time you have to keep in mind the higher rate of premium that you have to pay towards it. I'd request you to compare the monthly out-of-pocket expense towards the policy and the one-time expense as deductible before jumping at the idea of no-deductible auto policy

Thanks,
Rupert

Posted: Wed Feb 18, 2009 12:04 pm Post Subject:

The idea behind attaching deductible to the policy was to make the insured more responsible towards his actions. With deductibles the insured actually shares the cost of damages with the insurer. Hence, with no-deductible policy where the insurer is bearing 100% exposure to towards the risks you would be charged high. Rupert is right, compare the cost of one time payment vs premium payment. Instead, you can choose lower deductible to minimize your out-of-pocket expense at the event of accident.

Hope the experts would pour their insights too. And, I'd love to hear arguments both in favor and against of no-deductible auto insurance.

Posted: Wed Feb 18, 2009 12:10 pm Post Subject:

Would you buy no-deductible plan? Well, that's entirely your personal choice. Though, it's a very popular choice in Canada, very few insurers would offer low or no deductible auto policy. Even with high deductible plans if you successfully maintain clean driving record, you can avoid paying the deductible and at the same time would also enjoy lower premium rate. IMO, instead of searching for no-deductible plan, you can enjoy discounted premium by maintaining a good driving record.

Posted: Wed Feb 18, 2009 04:04 pm Post Subject:

I don't think a carrier offers no deductible for collision. I _think_ the lowest collision deductible is $100 but it might be $50. For comprehensive, I've had a $0. It was on a 1972 Le mans convertible. I took it due to the roof and wheels. Roof was cut twice by person just trying to vandalize it. On that car a $0 deductible cost me around $7/month. I newer vehicle is going to cost considerably more. As mentioned there is a huge different between all risk and almost all risk.

Posted: Thu Feb 19, 2009 07:15 am Post Subject:

No deductible will only be beneficial if you can afford those high monthly premiums.If you cannot then it will be just a burden on you & will not serve the purpose of the insurance when you will need it.

So it's better if you choose the plan deductibles so that the driver will feel responsible for the payment in case there is any accident or damage. so, this serves as being a moral check for those who are reckless drivers. if you consider that you are a responsible rider and if you are struggling with the debt better go for plan with deductible

Posted: Fri Feb 20, 2009 03:48 am Post Subject:

I have a $50 comp deductible because it only cost me an extra $16/6months. I did noticed that i was a little careless about worrying about things getting stolen from my car because I knew it would only cost me $50 but then I learned that vandalism may result in a higher premium later on.

For me being financially responsible for incidents has made me a more responsible driver.

Another way to look at it too is if you find yourself to be an unlucky person having low deductibles will be beneficial but if you never need to use your low deductibles it kinda defeats the purpose because of the higher monthly premium.