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I'm involved in the pre-launch of IDA. The launch product will be their Collision Deductible Reserve Plan which could help save customers 10-40% on auto insurance by raising their collision deductible from $250 or $500 to $1,000.

We're building our pre-launch team. If you're interested in the opportunity please PM me.Edited by: gatormom

Ok I understand business is business, but $500.00 or $1,000 should be part of a person's emergency fund. The rule of thumb is 3-6 months of
living expenses. If someone has $1,000 in a seperate account just for
a car insurance deductable, what happens if they need it for a health
insurance deductable such as for a disability or health policy or if the
air conditioning or plumbing goes out?

It seems that with the IDA program the funds are locked away or if taken out there is a fee. So my question is why not just have a regular savings account? With a personal savings account the individual willl have instant acces to the funds and they have control when to use them.

Like I said I understand this is a business and may be a good fit for some people, but to me if a person has an emergency fund that deductable should be considered an emergency need.

As always to each his/her own.

Hi Cornelius,

Thanks for your post. I think in today's economy a lot of people don't have an emergency fund.

I believe the plans they have in place - 2 with discounts of 25% and 35%, respectively and the 3rd plan in which IDA will provide interest free money up to the $1,000 should you get in an accident during the accumulation period coupled with the savings someone realizes over their driving lifetime by raising their deductible will appeal to people.

yes, so you are saving the clients money for them...and probably
investing it to earn the max you can get. I would agree with
cornelius. Raise your deductible and put the money in a savings
account and earn your OWN interest. No need to pay someone to do it
for you...and they reap all the benefits.

What happens though if you raise your collision deductible to $1,000 and have not yet saved $1,000 to cover the deductible should you have an accident? The CDRP will provide "interest free" money - up to a full $1,000 - eliminating your risk of having to come up with any shortfall.

In addition, many leasing and finance companies when you buy or lease a new car require a $500 collision deductible. IDA will have an "Exception to Policy Request Form" that clients may complete and send to their lending institutions requesting an exception to that policy and asking them to allow a higher collision deductible because they have a CDRP account. In the testing phase, IDA has found that most lending institutions readily accept this request for an exception to policy and allow customers to carry higher collision deductibles.Edited by: gatormom

IDA will be coming out with a new website next week targeted at auto dealers about the benefits of offering the Collision Deductible Reserve Plan at the point of sale.

A lot of auto dealers are hurting in this economy and this could be another source of revenue for them.