Today, I am thankful for having insurance on my car.

So I guess this is why I insure my car. I have a pretty good insurance policy, with a $1,000 deductible. My car sustained some damage last week, for which I was not at fault and the cost to repair is well over the cost of my deductible.

What is my insurance covering?

  1. All repair costs above my $1,000 deductible
  2. A rental car, for up to a month

The rental car should definitely make this less of a pain and I found a repair shop not too far from my office and home, but so far, it’s just been a bit of a shock. A bit of a shock that my car has this damage. This is the first time that something of this level has happened to my car. I’m quite surprised at the level of emotional attachment that I seem to have acquired to my car. I’m hopeful that my insurance premiums won’t go up or if they do, not by much, since this damage was not my fault.

As you all know, I keep some money set aside in my reserves fund to cover my car insurance deductible. I’m going to use this money to cover the deductible, but then that leaves me with an empty car insurance deductible reserve fund. I’m debating how I will replenish this fund and whether I will:

(Original plan) Pay an extra $2,200 against the mortgage from my October paycheck at the end of the month

  1. Replenish the car insurance deductible with the full $1,000 this month and pay an extra $1,200 against the mortgage from my October paycheck at the end of the month
  2. Follow the original plan and never replenish the car insurance deductible fund since really I can pay for this problem out of extra cash flow
  3. Replenish the car insurance deductible at some rate of say $200/month and then pay an extra $2,000 against the mortgage from my October paycheck at the end of the month

Honestly, I”m most likely going to go with option #1. Having the funds set aside specifically for this, even though I have plenty of other savings made this a lot less stressful.

Happy Monday, readers, Happy Monday.

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13 thoughts on “Today, I am thankful for having insurance on my car.

  1. Argh! Sorry to hear that but sounds like you’ll well equipped to deal with it.

    Is that how insurance normally works in the US? We have a high excess (because T has had a few accidents) but if someone damages our car, we don’t pay anything towards that claim at all – it’s over to the party at fault entirely.

    • Thanks! The insurance seems to make this quite simple, which is awesome :)

      If someone damages my car and I know how did it, then no, I don’t pay anything towards that claim at all. But in this case, I don’t know who did it, so I have to go through my insurance to get it fixed since it was well over the cost of my deductible to fix it :/ If it was like $1100, I might have just paid it, except for the fact that the insurance also covers a rental car, which would have otherwise cost me over $200 for the time I need it.

      • Lame. You should consider buying a club, by the way. I use one on the Malibu when I’m in car theft country (as if car thieves needed another reason to not steal an ancient, dented car that lacks any marketable items).

  2. Unlucky bud, $1000 deductible is a nice little slap though. I had my car attempted stolen a few weeks ago also and I’ve just lost all heart in it now. Insurance didn’t cover me and i’m left with a nice big screwdriver hole in my drivers door :(

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