What is a disappearing deductible?
A disappearing collision deductible discount is not a magic trick. It can be a way for you to save money on your car insurance premium, if you qualify. Essentially, the vanishing deductible is an incentive that rewards “safe” drivers by reducing the amount of their deductible, or out-of-pocket expenses if they do file a claim.
Insurance companies know that safe drivers have fewer car accidents and get fewer speeding tickets. Safety conscious car drivers tend to follow the rules of the road. They make fewer insurance claims. This can save insurance companies a significant amount of money every year. Insurance companies like to have safe drivers as policyholders for just this reason.
Vanishing Deductible Saves Safe Drivers Money on Deductible
Some big insurers offer “safe” drivers a special incentive, called the vanishing deductible discount. While each insurance company’s specific safe driver program varies, the programs generally subtract some of the cost of the deductible for each year a driver qualifies as a safe driver. Auto insurance companies also tend to reward driver loyalty.
It is important to realize that your insurance company does not take this safe driver deductible discount off the cost of your car insurance premium. Rather, this money is money saved out-of-pocket on the amount of your deductible if you have a car accident and file a claim.
How Does The Vanishing Deductible Work?
Let’s say that you have an insurance premium that includes a $1000 deductible. This means that in the event of a car accident in which there is $10,000 worth of damage to your auto, you will have to pay the first $1000 out-of-pocket. Your insurance provider will then cover the remaining cost of repair.
Typically, if you are in a vanishing deductible discount program, each year that you do not file a car accident claim, your insurer will drop your deductible by $100. If you went for ten years without an accident, depending on the maximum vanishing deductible credit your insurance company provides, you could, theoretically wind up with a zero deductible.
What Makes a Safe Driver?
Each insurance provider has different criteria for qualifying as a safe driver. The most important factors that insurers may consider include your driving history, history of traffic violations, car accidents, and other factors. Even if you have a less than stellar driver’s record, it may still pay to ask your insurance agent if you qualify or how you can qualify in the future.
Do You Qualify for the Vanishing Deductible Discount?
To learn whether your insurance coverage includes the disappearing deductible discount, give us a call or fax or e-mail us a copy of your Massachusetts Auto Insurance Coverage Page.
Get in touch with an agent who will take the time you need to understand your options, such as explaining: what is a disappearing deductible? Call or click Massautoquote.com.