So thanks to our Church being robbed, the idea of High insurance deductibles is weighing on my mind.
What is the “tipping point” for insurance deductibles? (sorry I love mis-using that term, just like the real media). If you set your deductible high enough, you may as well not even have insurance (which is kind of what I learned from our Church’s experience, after it was robbed), whereas if you set your deductible too low, you end up paying an inordinate amount of money in Insurance Premiums.
The example of my Church: some “scum bag” stole a laptop computer, which was being set up for a presentation.
The insurance deductible for the Church was set so high, the Church could not make a claim (since the laptop price was much lower than the deductible). I was told that if we had the deductible been set low enough to give some money for the laptop, the premiums would be approximately double what they currently are (paying). We did make a police report and such, so in fact we may end up with a higher insurance premium (because the Church is being robbed (interesting twist of fate)).
My problem with this whole deductible quandary, is that the insurance becomes effectively useless except in dire circumstances (i.e. your car is stolen, your house burns down, etc.,), if your deductible is set high (to save on insurance rates). I end up self-insuring for little things like bicycles being stolen from my garage (another “scum bag” moment), or things like that.
My guess is that where to set your insurance deductible is a personal choice at the end of it all.
Anybody got any personal experience where the “sweet spot” for insurance deductibles should be?