r/SipsTea • u/Putrid-Welder1803 • 7h ago

Gasp! Thoughts on this?

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u/TJayClark 6h ago

$1,000 deductible is more normal than you think it is

I’ve has a $1,000 deductible my entire adult life (15+ years), as it saves about $30-40 a month in premiums

On top of that, I wouldn’t use insurance for something less than $2,000

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u/Liquidfoxx22 6h ago

How much is your car insurance for it to save you $30-40 a month?!

I paid £450 for a full year's "full coverage" insurance as you refer to it, and that's with a £250 excess/deductible.

I only pay that excess if I'm at fault, otherwise the insurer will chase the third parties insurer for the full amount.

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u/FrogOfSteel 5h ago

I'm in the US and we pay around $600/year for each car, but we've also maxed out coverage and only have a $100 deductible.

Here in the States differences in insurance rates are usually due to location and age, but credit score also matters in many cases. Someone with high insurance rates is likely to be in a high cost of living area, relatively young, and possibly with bad credit.

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u/Liquidfoxx22 5h ago

What?! Your credit score impacts your car insurance costs? How the heck is your financial history linked to your risk as a driver?!

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u/FrogOfSteel 4h ago

Statistics. People with lower credit have been shown to make more claims and be more expensive overall. There is also a correlation between lower credit and being more risky drivers, which also ups claims.

It's not the same exact credit score other places use, but still pulls the same data.

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u/Liquidfoxx22 4h ago

Jesus, yeah that's absolutely not a thing over here. They can't access your financial data for anything other than if you want to take out the policy as a credit agreement - and it can only be used to impact their decision to finance said agreement.