A Word on Deductibles

Posted on 07-28-20 by petermba@optimum.net

So ,how many of us really understand this “dirty” little insurance principle: well turns out not many, at least not completely. Chances are your agent, broker, or financial advisor told you your deductible will help save you money on your insurance policy; lower premium payments and so many of us feel we should ask for a high deductible. Makes us feel better & your agent, broker, financial advisor feels good too, they were able to sell you that insurance policy that was expensive and say they helped save you money. In fact they felt so good about all the help they gave you they probably said nothing when you decided to take $1000, $1,500 or even $2,000 dollar deductible to save as much money as possible!

Well the truth is after $500 you really save very little on your deductible relative to what you will have to pay in the event you have to file a claim for damages to your car. Your deductible is an agreement you made with the insurance company that you agreed to pay that amount of money before the insurance company will pay you anything. You see you told the insurance company you would set aside that amount of money in case you had a loss & it would be available for just that use. Of course none of us ever do. That few, &I mean few dollars you saved on your premium will costs you allot of money if you have a loss. There is an old adage, deductibles save you money on your insurance premium, costs you money on your insurance claim. Gambling may be fun in the casino but not when it comes to your car insurance. Remember, your agent, broker or financial advisor won’t be there when you have to file a claim to have your car repaired. Are you going to be able to pay that high deductible when that time comes? Oh the body shop will help me & save some or all my deductible; right? Well I can tell you this ,there is no body shop deductible fund available to draw from but with a responsible deductible there may be options available; especially if you choose one of our network partners. Check in next month when I will reveal how & why you may not have to pay your deductible & that its perfectly legal & ethical.

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