[Margaret]

Trying to reduce some overhead costs…
Called Traveler’s regarding deductible limit increase to my Homeowner’s poliy.

Raising the deductible from 1K to 2.5K only lowers it $85/yr.

Raising the deductible from 2.5K to 5K lowers it $104/yr.

Not sure it makes sense to change the deductible limit?

Thoughts?

[Tony]

Why are you playing around with only one company? Loyalty only goes one way with corporations.

Call a broker and have them search out dozens of companies on our behalf to get the best rate possible with virtually no effort from you.

[Katie]

I wouldn’t do this, but do shop around, as you may be able to save even more.

Do watch for a lot of companies going to a percentage deductible instead of a fixed amount, especially for certain perils.

I like to divide the additional deductible by the savings, to determine a general break even time, although rates will change over the years.

Most folks, even with good records, will need to file a claim more often than every 17-38 years.

[Paula]

I have mine at 5000 or above. I would never file a claim lower than that because insurance companies drop you after claims are filed.

I would rather just put 5k into a savings than pay a higher rate, and shop around you might be surprised.

This year is tough on premiums.

[David]

You’d likely see higher savings shopping other companies with a $2,500 deductible.

Travelers doesn’t care they already have you.

[Holland]

Shop around for other insurance. AAA is really cheap. Everyone I’ve sent to AAA lowered their insurance costs significantly.

[Patrick]

1500 / 85 = 17.6 year breakeven.
Id keep the lower deductible if the savings is only $7/mo

[Andrew]

If you have an emergency fund set up I would suggest 10k deductible. Makes a difference at that level.

[Author]

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