auto insurance collision deductible costs

Posted: Sat Feb 28, 2009 06:18 pm Post Subject:

Greeryan,

This is a good question ... thanks for asking it!

With the economy in its current state, I have people asking about raising their deductibles or dropping physical damage coverage entirely. My response is, "It depends on your financial situation. Your deductible should be as high as you are comfortable paying if you have a claim, but not so high that it causes a hardship for you. If your car is damaged and you have to pay the first $500 to get it repaired, how would you pay it?" The way you phrased the question, and the responses in this forum, will give me some more things to suggest to them as food for thought to help them make the best decision for their own situation.

Thanks!

Posted: Sat Feb 28, 2009 06:45 pm Post Subject:

amit of course the more the better, i'm just saying that ANYONE and EVERYONE should be able to put back 5 bucks a week to start...that's 260 a year...and one of the absolute most frustrating things to me is this...people that really are in dire straights zero savings...barely getting by...then they get a giant income tax refund, and blow it :x i've seen people (some are relatives) i know have nearly nothing, get back 4-5-6k from Uncle Sam, and it's gone within 30days new furniture, clothes, t.v.s, entertainment, etc...i'm not for a second advocating that you shouldn't treat yourself some, buy a new t.v. get some new clothes...but for pete's sake, why can't these people think to atleast put half of it in the bank and leave it alone!? I'll never as long as i live understand this...

Posted: Sat Feb 28, 2009 07:34 pm Post Subject:

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 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.

Dedicated Associate-Associate Contact Information-Ryan T Green

For example, if you have a $1,000 collision insurance deductible, and you are involved in a collision that requires $5,000 worth of repairs to your vehicle, you would be required to pay $1,000 (your collision insurance deductible) before the insurance company will pay the remaining $4,000 to the repair shop.

collision insurance pays for the repairs to the vehicle after the consumer pays their collision insurance deductible.

Posted: Sat Feb 28, 2009 09:40 pm Post Subject:

Well I'm Glad to see that so many people have an interest in this subject.
I am a Marketing Director for IDA Marketing Services as Lori implies, but I did not post any links. I was interested to see how people would pay.
Now to set some things straight that Lori has said about IDA. This is posting was not supposed to be about IDA but I need to give correct information.

First off.. The Collision Deductible Reserve Plan or CDRP has been in the open market for over 5 1/2 years and has been approved by the insurance and securities regulators and all legal authorities in all 50 states.

Lori I'm not sure which site you looked at for your information but this is how the insurance collision deductible Reserve Plan works in a nutshell.

Step one... Raise your Collision Deductible to $1000...This will save you 10% - 40% on your insurance

Step two... Set up a CDRP and fund it with your savings, once the CDRP is funded you no longer contribute to the account. It stays there for when you need it. And you continue to pocket the savings from having a higher deductible.

Step three.. If you have an accident before you have the full $1000 IDA advances you the difference. You pay back the advance with no interest and no fees at a minimum of $25 a month.

Step four... When you retire from driving due to age, health, or similar situations IDA gives you back your $1000.

The Collision Deductible Reserve Plan(CDRP) acts much like a health savings account. You raise your deductibles and redirect your savings to an account that is dedicated to a specific purpose. The act of raising your deductibles from $250-$500 to $1000 will save you 10% - 40% on your overall premium.
In a health savings account(HSA) your money can only be used for medical expenses, With the CDRP your account can only be used for your collisions.
The advantage of the CDRP is that you can leverage your contributions to your CDRP to eliminate the risk involved having a higher deductible, that risk being a lump sum $1000 out of pocket. With the CDRP that deductible is spread out over time with no interest accrued. And even though many people are very smart and know that they can save money with a higher deductible yet they still have lower deductibles.
There are many reasons for this but one of the most common is that most lenders or lease companies will not allow you to have a deductible over $500. Over the last 9+ years of development and 5 1/2 years of product testing IDA has resolved this problem and without fail, to date all lenders and lease companies have allowed the customer to raise the deductible to a higher amount. The reason for this is that IDA now secures that deductible as a third party company. The fact is that most people do not have the discipline or the where with all to set up there own "reserve account" and not to tap into it. Plus the time it would take to raise a $1000 savings from the savings of a higher deductible would take a long time, and during that time they have an increased risk due to the fact that they do not have the full $1000 in their savings, where would the money come from should they have an accident? A credit card? a payday loan? All with high interest. With the CDRP those risks are not a factor anymore, because IDA will fund the entire $1000 interest free to cover the accident even if you only have $25 in your CDRP, no deductible out of the consumers pocket, and the advance is repaid over time from the savings that they realize from their higher deductibles.

Also all funds are FDIC insured, not to mention that several Leaders in the insurance industry are board member with IDA. These board members include Richard Hawkins Vice President of AAA Insurance of Washington and Idaho. Richard is well know in the insurance industry as a leader. Also Gerald McElroy is a member of the board of governors of Farmers Group Insurance and sits on the board of directors for Zurich Insurance as well. There are more than this as well.

When a client has a claim they take their car to the repair shop like usual and get the quote for the repair. The insurance company will pay the repair amount not including the deductible. IDA will send the funds to the repair shop to cover your deductible for you so that you do not have to come up with a lump sum out of pocket.

I don't know why you would have an objection to people saving money that they already spend on insurance and set up their own reserve account to pay for their deductible. Any financial adviser will tell you that raising your deductibles will save you money that you can use for better things.

If you have further questions Lori I will arrange a meeting with Gerald McElroy and/or Richard if you like or the CEO of IDA.

Again I was not intending that this thread was about IDA but I need to give correct information.

Ryan Green

Posted: Sat Feb 28, 2009 10:12 pm Post Subject:

I be;ieve that if you can set up a fund with a company like IDA then any person with half a brain can go down to their local bank and set up a fund there...its called a savings account. If you have the means to invest in a fund then you have the means to set aside your own deductible.
One should never agree to a deductuble they will not be able to pay if something would happen. If you do so that you can save on car insurance then putting aside the difference is a saving account just makes way more sense to me and it seems it would eb a whole lot less of a hassle.
Lori, I know what you mean about income tax. See it around here all the time. People will go blow it and then when disaster hits they split up and go knocking on relatives doors for help. If this was the case and it was my door being knocked on I would ask them to sell off one of their purchases or let me hold it for collateral.

Posted: Sun Mar 01, 2009 05:44 am Post Subject:

If anyone has ever experienced before, when a troubles start, they prfer to attck us in bunch!! You have no credit card co. giving you maney on time as you have already used elsewhere for development, your colleagues would alrady be in the trouble as you are in these days and so on. But it is a fact that a car would never be left broken if you are industrious. And in case of savings, it seems painful for everyone. I try a thing when I get payments from somewhere I just give a handful of money without any count to my mother( she is a good at savings). Then I beg at her only when there is no otion left! How's an idea?

Posted: Sun Mar 01, 2009 07:22 am Post Subject:

Here is a mind blowing fact.... If everyone in the USA that has a Collision Deductible of $500 or less raised their deductible to $1000 it would produce around $60,000,000,000 a year in savings! Yes 60 Billion dollars in savings, that is what I call a Stimulus package. :D

I be;ieve that if you can set up a fund with a company like IDA then any person with half a brain can go down to their local bank and set up a fund there...its called a savings account. If you have the means to invest in a fund then you have the means to set aside your own deductible.

If you have the means to invest in a fund then you have the means to set aside your own deductible.

Posted: Sun Mar 01, 2009 01:19 pm Post Subject:

I think , Insurance is nothing but a Sinking fund.Like this You also need to have A saving account. You need to save some money by cutting down some of you unwanted expenditure. This would be used only in the case of non-anticipated or unforeseen situations.Everybody should learn the act of economizing.

Posted: Sun Mar 01, 2009 02:05 pm Post Subject:

but I did not post any links.

Lori I'm not sure which site you looked at for your information but this is how the Collision Deductible Reserve Plan works in a nutshell.

I HELP OTHERS SAVE MONEY + I HELP OTHERS MAKE MONEY = I GET FILTHY RICH

I am a Marketing Director for IDA Marketing Services as Lori implies,

I don't know why you would have an objection to people saving money that they already spend on insurance and set up their own reserve account to pay for their deductible. Any financial adviser will tell you that raising your deductibles will save you money that you can use for better things.

First off.. The Collision Deductible Reserve Plan or CDRP has been in the open market for over 5 1/2 years

IDA built a bulletproof infrastructure until 2008 when they launched publicly on September 8th. .

and has been approved by the insurance and securities regulators and all legal authorities in all 50 states.

For example, if you have a $1,000 collision insurance deductible, and you are involved in a collision that requires $5,000 worth of repairs to your vehicle, you would be required to pay $1,000 (your collision insurance deductible) before the insurance company will pay the remaining $4,000 to the repair shop.

Can't even tell you how wrong and illegal that statement is in ALL states....no carrier can make an insured pay the deductible upfront...(might want to check the fair claims practice laws of each state)...the company will issue the 4k payment period...

collision insurance pays for the repairs to the vehicle after the consumer pays their collision insurance deductible

See my blog at http://IDAisawesome.blogspot.com and see how you can save on your auto insurance.

Again I was not intending that this thread was about IDA

Posted: Sun Mar 01, 2009 02:09 pm Post Subject:

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Hi Ryan,

Nice Press Release, but... both you and it failed to address Lori's comments on the Miss-information on the IDA web-site.

Quote:
For example, if you have a $1,000 collision insurance deductible, and you are involved in a collision that requires $5,000 worth of repairs to your vehicle, you would be required to pay $1,000 (your collision insurance deductible) before the insurance company will pay the remaining $4,000 to the repair shop.
Can't even tell you how wrong and illegal that statement is in ALL states....no carrier can make an insured pay the deductible upfront...(might want to check the fair claims practice laws of each state)...the company will issue the 4k payment period...

and again same incorrect information Quote:
collision insurance pays for the repairs to the vehicle after the consumer pays their collision insurance deductible.