What is vanishing deductible?
Vanishing deductible is also known as disappearing deductible. Deductibles are optional to include in your car insurance policy. You have to pay deductibles only if you add comprehensive coverage or collision coverage in your car insurance policy. Sometimes comprehensive deductible or collision deductibles will vanish or disappear over time with good driving.
The car insurance companies will decrease or vanish your deductibles if you drive without an accident over a long time. You will have to pay low deductibles if you do not get into an accident. It helps to encourage drivers to drive safely.
How does a vanishing deductible work?
Car insurance companies reduce your deductibles every year if you maintain a clean driving record. A clean driving record means drivers do not have accidents or violations in the driving record. You can also earn a $50 to $100 discount on collision coverage per year. For example, your deductible is $1000 then the car insurance company will vanish deductibles after 5 years to $500 due to a clean driving record. Every year car insurance companies provide annual vanishing deductible discounts for safe driving.
How can I get a vanishing deductible?
Vanishing deductibles are not offered by all the car insurance companies. Vanishing deductibles are offered to those who have a good driving history. Car insurance companies considered different factors to offer a vanishing deductible such as the state where you live, accident-free driving history, etc. to add a vehicle or another driver to the vanishing deductible program cost little as $10-15 if you already have a vanishing deductible. At the time of purchasing car insurance, you must confirm from the car insurance agent whether your car insurance company offers you a vanishing deductible or not.
Advantages of vanishing deductible
Following are the advantages of vanishing deductibles:
- Vanishing deductibles help to reduce your expenses of the car insurance policy. Car insurance companies may offer a $100 discount on your deductibles within the 30 days after signing up for the insurance policy.
- If you choose higher deductibles then you can save on your car insurance policy, car insurance companies charge lower car insurance premiums with higher deductibles.
- Some insurance companies offer you to save more than $500 on your deductibles.
- You will have to pay less from your pocket to recover the losses if you have an accident.
- Vanishing deductibles motivate and encourage the drivers to improve driving habits and maintain a clean driving record.
Disadvantages of vanishing deductible
Following are the disadvantages of vanishing deductibles:
- Your deductibles will reset if you have an accident regardless of the fault.
- Vanishing deductibles are not offered by all the car insurance providers.
- You may need to set higher deductibles if you want to vanish or decrease your deductibles.
- Your eligibility to get discounts can be affected by state laws.
- You may be required to pay the annual fees to get the discounts which increase your expenses.
Companies that provide a vanishing deductibles
Many car insurance companies offer vanishing deductibles to their customers who do not claim files or maintain an accident-free driving record for 3-5 years. Following are the best car insurance companies that offer vanishing deductibles:
The Hartford offer disappearing or vanishing deductible. The Hartford may offer $150 off on collision deductible at the time of sign up and may offer a $50 vanishing deductible discount every year if the driver has no accidents or violations in the driving history.
Allstate may offer $100 off on deductibles when you sign up for a car insurance policy. Allstate may also provide a $100 vanishing deductible discount every year up to $500 to the drivers with a clean driving record. Allstate also provides an accident-free discount on car insurance policies.
Nationwide may offer a $100 vanishing deductible discount every year on both comprehensive deductibles or collision deductibles. It does not require a clean driving record to reduce your deductibles.
Allied may offer $100 vanishing deductible every year up to $500. You can get $100 off on your deductibles if you do not file a claim for the first 30 days starting your car insurance policy.
Liberty Mutual may also offer $100 off on your collision coverage every year if you have maintained an accident-free driving record.