What is the Disappearing Deductible Policy Option?

Learn how this car insurance program can save you money

Whether your car is damaged in a parking lot fender-bender or a multicar pileup on the highway, it all generally leads to the same thing—the stress and hassle of filing a claim, getting your vehicle repaired, and, inevitably, an increase to your car insurance premium.

However, there may be a very simple way for you to avoid paying part, and maybe even all, of the out-of-pocket deductible that typically applies when you have an accident, by adding the Disappearing Deductible option on your car insurance policy.

To understand how a Disappearing Deductible might benefit you, it’s important to first know how your deductible works

If your car needs repairs due to a crash, vandalism, or other similar incident, your auto insurance policy deductible is the amount that you would owe before insurance kicks in. Your deductible is probably either $500 or $1,000, but you will want to speak with your local insurance professional or check your policy documents to know for sure what you will owe. If you have any trouble finding this information, please reach out to the HIG team for assistance.

In addition, it’s important to know that your deductible generally applies only to the collision and comprehensive portions of your policy. Collision is the coverage area that is activated when you are in a car accident, no matter who is at fault. Comprehensive coverage is for damage to your vehicle caused by events considered outside of your control other than collision losses, like a flood, fire, or falling tree.

Most importantly, you are responsible for paying your deductible if you are found to be at-fault for a crash that damages your vehicle. You typically also have to pay your deductible if you’re involved in a car accident where fault is not applicable for comprehensive coverage—like if a tree falls on your car. Also, even when you’re not at-fault for a vehicular accident, you could still be responsible for paying your deductible, particularly if the other driver is either underinsured or has no insurance at all.

Now that we’ve provided some straight talk about your car insurance deductible, we’re ready to tell you more about how the Disappearing Deductible policy option works. We think you’ll be particularly interested in how this endorsement might gradually erase the deductible amount you are responsible for in an accident.

How the Disappearing Deductible car insurance policy option rewards you for safe driving

If your safe driving behaviors have helped you avoid a car accident, a speeding ticket, and other traffic violations over the past year or more, then you have what the insurance industry calls a “clean driving record.” Most insurance carriers like to encourage and reward safe drivers like you by offering additional—and potentially cost-saving—car insurance options, such as Disappearing Deductible Rewards.

Here’s typically how this rewards program works:

• Every year that you don’t have an accident or traffic violation, you earn a dollar-value credit that is applied toward your deductible.
• The credit amount you earn will vary depending on your insurance company, but generally ranges from $50 to $100.
• Some companies offer you an immediate credit of up to $100, just for signing up for their program.
• There is a possibility that you can knock your deductible down to $0 if you rack up multiple years of safe driving and your insurance company allows it.

No matter how many credits you’ve earned at the time of an accident, by having the Disappearing Deductible option on your policy, you might owe substantially less than you would have without this program. If you get in an accident, however, your deductible could reset back to the original amount, often regardless of who is at fault. Then, you’ll have some work to do over the next year to get back in good standing with your insurance provider and reestablish eligibility.

HIG is here to provide more information on Disappearing Deductible Rewards and driving safely

Being a good driver not only means you have avoided getting into accidents and receiving tickets, but also that you’re making the roads a whole lot safer for everyone else. For this accomplishment, many insurance companies believe you should be rewarded with valuable policy add-ons such as a Disappearing Deductible.

However, just because your insurance provider offers this option to you, it doesn’t necessarily mean you should take advantage of it. It would be best to speak with a local insurance professional, like HIG, who can walk you through the pros and cons of opting into these rewards, as well as reviewing your eligibility and the cost of your insurer’s specific program. Sometimes during this analysis, we find that a client’s current insurance company does not offer a Disappearing Deductible option. If this is the case for you, we will help you evaluate if it’s time to shop around for a provider that does have this rewards program.

We also don’t want you to think that having a spotty driving record means you can’t access this rewards program. If your recent driving history has a few hiccups on it, you can still quickly work toward eligibility for this program and other popular endorsements, such as Accident Forgiveness, by following safer driving tips and maintaining a safe vehicle. Some safe driving behaviors are obvious, like obeying all speed limits, always wearing your seatbelt, never driving under the influence, and not talking on a cell phone while driving. However, the HIG team might be able to provide you with some insights into additional safe driver habits that you may be overlooking right now.

At HIG, our knowledgeable professionals are committed to finding you the car insurance coverage options that are best for your driving behaviors and budget, and we’re passionate about helping you and your passengers stay safer on the roads. Put our experience to work for you today by calling us at (508) 676-5949.

Not available through all carriers.