What Are Vanishing Deductibles?
There are so many insurance commercials talking about vanishing deductibles. Find out what they are and why you should get them. Furthermore, get free quotes car insurance from our website.
The theory behind vanishing deductibles is that it is a reward for safe drivers. If you go a year without being involved in an accident, your deductible will decrease $50-$100. Let’s analyze this extra insurance coverage to see if it’s worth buying by the average car owner.
Most of the vanishing deductibles programs allow you to get a $100 deductible credit immediately. The credit applies to both comprehensive and collision coverage.
Every year you remain accident and major violation free, with no policy lapses, you will receive an additional $100 credit (maximum of $500 credit). Claims will automatically use the deductible credit and the deductible credit will be reset to $100. It has no cash value and the entire credit will be used in the event of a claim. You do not get to choose when to use your deductible credit, it is not bankable. As long as the feature is active, the vanishing deductible credit will never go below $100. If the feature is removed; the earned credit is reset to $0.
One thing to remember is that this extra feature does not come for free. Plus, you have to request the program, it does not come automatically with your coverage. The cost can vary based on how many full coverage vehicles you own. The cost may vary, but even a minimum of $5/month is enough to make you think twice before buying this option. It is up to you if you want to use money for this feature or put them in an emergency fund which can be used for all sort of situations, not only claims.
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