Massachusetts Auto Insurance: Disappearing Deductible

Many insurance companies now offer some sort of “Disappearing Deductible” program.

Some companies make you qualify for their program with a perfect, or near-perfect, driving record.

Some companies charge for the endorsement, some include as part of a package endorsement.

Often, if you qualify for the program, it can make a lot of sense.

Vermont Mutual Insurance Company, for example, offers their “Advantage” endorsement for $49 per vehicle.

This endorsement, among other things, includes a “Disappearing Deductible” program. The program works like this: when you add the endorsement, Vermont Mutual will give you an automatic, year 1 credit of -$200 toward your Collision deductible.

If you have a $500 Collision deductible and you get in at-fault accident (or are the victim of a hit & run), then Vermont Mutual will apply the credit and, instead of the $500 deductible, a $300 deductible will apply.

If you carry a $1,000 Collision deductible, an $800 would apply.

Each year you go accident-free, an additional – $100 deductible will apply, up to a maximum of -$500 credit, after four years without an accident.

If you are able to choose a disappearing deductible program, we recommend you consider increasing your Collision deductible from $500 to $1,000.

The savings more than pays for the cost of the endorsement.

Please call or click us with any questions or to discuss your available options.


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