Find Diminishing Deductible Near Virginia Beach, Virginia

Learn More about Diminishing Deductible >>

Filter agents by:

States
Products
Niches
Companies

What is Diminishing Deductible?


If you have ever heard of the term ‘diminishing deductible’ or ‘vanishing deductible,’ you might be wondering what it actually means. Here, we explain everything you need to know about diminishing deductibles, including what they mean, and more importantly, how they impact the cost of an auto insurance policy.

What is a diminishing deductible?

This is an optional choice for your insurance policy and will essentially reduce any out of pocket expenses you may incur if you need to make a claim.

How do diminishing deductibles work?

Although it’s important to check the terms offered by each provider, most insurance companies will offer $100 off your insurance deductible for every of your safe driving. In most cases, this will be limited to $500.  

For example, if you have an insurance deductible of $600, after three years of safe driving, you will have earned a $300 credit. So, in the event you have an accident, you will pay just $300 towards your deductible before your primary policy will payout.

If you have an accident, then your deductible will not go back to the original $600 amount. Instead, it will merely be reset to $100.

Do all insurance companies offer diminishing deductibles?

Not every insurance company will offer a diminishing deductible. If you want to buy insurance with a diminishing deductible, speak with a local insurance agent to find out the best place to buy this from.

What are the benefits of a diminishing deductible?

There are three main advantages to having a vanishing deductible endorsement on your policy.

  1. You get rewarded for safe driving
  2. You will reduce your out of pocket expenses, with a minimum discount of $100 at all times
  3. This gives you the option of choosing a higher deductible on your policy to attract a lower policy premium

How much does a diminishing deductible cost?

The cost of this will depend on the insurance company you choose, and the number of full coverage vehicles you own and drive. In some cases, it could only cost an additional $5 per month on your policy premium.

Can I add this coverage mid-way through a policy term?

No, you cannot. You will need to wait for your insurance renewal before you can add this to your insurance policy.

Should you buy a diminishing deductible?

This is really a personal choice, but to help you make up your mind, we have put together a quick pricing scenario for you.

Let’s say you pay $5 per month ($60 annually) for your diminishing deductible coverage. You are paying $60 for a potential discount of $100. Now, if you were to have an accident on year 2 of your policy, you will have paid out $120, and you’ll get a discount of $200 from your deductible.

If you are approaching the renewal date on your insurance policy, you might be considering buying a vanishing deductible; always talk to your local insurance agent to get guidance and prices for the best levels of coverage.


Are you Shopping for Insurance? Find Agencies by Zip Code.​

Britebee Logo
       
(877) 962-7483 | Oklahoma City, Oklahoma | Send Us an Email
Privacy Policy | © 2020 BriteBee. All Rights Reserved.