I just double checked my last Mercedes lease paperwork- they do indeed allow up to $2500 deductible. Most others, whether leased or financed, seem to be $1000.
1 Like
Think my diff was about $30/month. Insurance went a total of $70/month on the new car. More than I expected.
Interesting. Have you run your CLUE report? Or do you have a sense why that might be so high?
They are more flexible then. Good news 
Haven’t done a CLUE report. Don’t know what that is.
Insurance is $70 more a month on the new car. They said it’s because it’s mostly because of two factors.
- Lower deductible ($1k instead of $2.5k)
- More expensive car ($65k instead of$50k msrp)
I think they said it would have reduced by $30 on a higher deductible.
CLUE is your credit score for insurance claims:
2 Likes
Interesting, never heard of this. Will check it out. Thanks!
1 Like
Same reason they force you to have coverage in the first place. If you have too high of a deductible, it raises the chances you could be tempted to shirk you responsibility to have the car repaired. It’s all about risk mitigation for themselves as the captive as others have said. It’s in the contract and if you’ve signed it, you’ve agreed to it, if they didn’t ever enforce it, it would ultimately be pointless requiring it.
1 Like
While $30/mo sounds a bit high to me to go from $2500-deductible to $1000-deductible… Think of it this way: if you had just one $2500+ incident in 50 months, you would be net positive financially. And that’s not even considering that the delta may reduce over time as your rates go down due to a longer incident free record.
If $30 a month is too much, maybe a Corolla lease would have been a better option
3 Likes
I get wanting to save $360 a year/$1080 over the lease on car insurance, especially if you are a very safe driver, but yeah on a car that expensive it’s peanuts. Just put the insurance on autopay and enjoy the car.
1 Like
$1,000 on paperwork latest signed.
1 Like
off topic: just read my Volvo lease agreement. Volvo says $500 collision & comp deductible is required.
1 Like
It’s not your car. They don’t care what your risk tolerance level is, only theirs.
3 Likes
Maybe he wants to use his savings towards an option he wants? His desire to save on insurance has nothing to do with what he can afford.
4 Likes
Surprising that a line item in a contract is verified and enforced? Their business model is held profitable by observing and adhering to certain constraints and knowns.
A bunch of underinsured folks driving their depreciating assets didn’t fit into that model.
2 Likes
We are talking about $1500/ per vehicle risk and the risk is minuscule. I know its not enforced because I know at least two people who has $2500 deductible in their BMW insurance.
1 Like
Then it may vary based on your specific insurance carrier to alert them. I tried this with Geico twice in the past and failed both times, once with a warning from BMW and the second with an automated warning.
1 Like
I’m sure there are idiosyncrasies from one insurer to the next, and they may not all be as automated as yours.
Example:
Until recently we had everything insured through Amica, and in order to get the BMW insurance issued correctly I had to provide them with the address for BMWFS… as if this was the first leased BMW they’d insured since they opened their doors in 1907.
I must have asked four or five times, “You honestly don’t have that on file somewhere?”
Every lease I’ve had with every insurance company has asked for the name and address of leasing company: GEICO, Progressive, and Travelers. My understanding is there are enough exceptions that they won’t just assume. Seems silly but 