Are you ready for an accident?
I did a post last month asking if you were prepared for an emergency, which was about saving 3-6 months worth of savings. This was to prepare you for a job loss or emergency. Today is about deductibles.
Last July, JP and I were driving from Denver to Amarillo on our way to a family vacation that would lead us to Dallas and then Destin. About an hour or so in, we hit a deer. We left at dark and if you have ever been driving between Denver and Amarillo, there are no lights on those roads once you get off the highway. I would also like to say that my mom jinxed us because five minutes before hitting the deer, my mom said not to hit a deer. Thanks, mom! We were able to drive our car the rest of the way to the hotel but had to leave the car at an autoshop in Amarillo while we got a rental and continued on our way. I bring this up, because accidents happen and insurance is a must. Unless your car insurance is just liability, you have a deductible you have to pay towards any charges to repair your car. Ours at this time was $500. My question is, do you have your deductibles from all of your insurances saved up?
We have a savings account, this account includes our 3-6 months of emergency fund, deductibles, fully funded flywheel items we do not need yet and the balance left of my contribution.
If you look at your insurance coverages for your car, medical, house, etc, you will find that there is a deductible amount listed. Since our car accident, we have changed our car insurance to liability only because they will likely total my car if we were to get in another car accident. Our car is a 2012 Nissan Altima and if you have an older car, insurance companies don't think it is worth covering the repairs. This means that if we want to repair our car again, we have to pay for those costs or buy a new car. But we do have a house deductible and medical deductibles. We have saved those amounts in our savings so that if and when we need to cover those costs, we are good to go.
If you do not have these saved up yet, I suggest saving up for those before paying down your debt, unless you are doing the Dave Ramsey baby steps. You should do what he says if you are following his method. When you have the money saved up for accidents and emergencies, it really does take the situation from a freak out moment to just an inconvenience.
Do you have your deductibles saved up? Comment and subscribe.
Last July, JP and I were driving from Denver to Amarillo on our way to a family vacation that would lead us to Dallas and then Destin. About an hour or so in, we hit a deer. We left at dark and if you have ever been driving between Denver and Amarillo, there are no lights on those roads once you get off the highway. I would also like to say that my mom jinxed us because five minutes before hitting the deer, my mom said not to hit a deer. Thanks, mom! We were able to drive our car the rest of the way to the hotel but had to leave the car at an autoshop in Amarillo while we got a rental and continued on our way. I bring this up, because accidents happen and insurance is a must. Unless your car insurance is just liability, you have a deductible you have to pay towards any charges to repair your car. Ours at this time was $500. My question is, do you have your deductibles from all of your insurances saved up?
We have a savings account, this account includes our 3-6 months of emergency fund, deductibles, fully funded flywheel items we do not need yet and the balance left of my contribution.
If you look at your insurance coverages for your car, medical, house, etc, you will find that there is a deductible amount listed. Since our car accident, we have changed our car insurance to liability only because they will likely total my car if we were to get in another car accident. Our car is a 2012 Nissan Altima and if you have an older car, insurance companies don't think it is worth covering the repairs. This means that if we want to repair our car again, we have to pay for those costs or buy a new car. But we do have a house deductible and medical deductibles. We have saved those amounts in our savings so that if and when we need to cover those costs, we are good to go.
If you do not have these saved up yet, I suggest saving up for those before paying down your debt, unless you are doing the Dave Ramsey baby steps. You should do what he says if you are following his method. When you have the money saved up for accidents and emergencies, it really does take the situation from a freak out moment to just an inconvenience.
Do you have your deductibles saved up? Comment and subscribe.
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