Reap the Rewards of a Vanishing Deductible
A car crash is a frightening—and expensive—experience. Even if you are not at fault in for the accident, you will typically pay an out-of-pocket deductible for repairs on your vehicle. Depending upon your insurance plan, this deductible payment could be $500 or even $1000. There are ways to limit the cost of a car accident, including the deductible.
When choosing auto insurance coverage, you will have the option of selecting the level of your deductible. You may even be able to select a vanishing deductible that decreases over time, or a zero deductible plan that helps you avoid out-of-pocket expenses altogether.
You’ve Earned it: Vanishing Deductible Car Insurance
Some car insurance providers offer policies that include vanishing or diminishing deductibles. Each year or set time period that you do not have an accident or ticket, a portion of your deductible is removed. The longer you go without an accident, the cheaper your deductible will become.
Choosing a policy that includes a vanishing deductible is a great way to save money, especially for safer drivers who are able to avoid accidents or traffic infractions.
Zero Deductible Auto Insurance Policies
Some auto insurance providers offer zero deductible policies, while others give customers the option of choosing a zero deductible add on that eliminates the out-of-pocket payment in the event of an accident.
A zero deductible policy costs more than auto insurance plans with deductibles, but will put you back on the road with no out-of-pocket costs in the event of an accident. After all, coming up with a large cash payment when you have been in an accident can be difficult.
High, Low, Zero or Vanishing Deductible?
Choosing the right deductible can be confusing. Understanding your options, the costs of each type of deductible and the benefits they offer is important. An independent insurance agent—who has access to several insurance companies and is familiar with state law—will help you learn about the benefits of the various options.
Do you have a policy with a vanishing deductible or a zero deductible? What did you consider when you made your choice? Share your experiences by posting in the comments section below.