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The word “disappear” is typically used to describe something that has gone away or vanished into thin air. Which is not always a good thing, as in “My car keys seem to have disappeared again!”
But, when the term is applied to the collision deductible on your auto insurance policy, well that’s something that any driver can feel good about.
Why is that? Because having Disappearing Deductible rewards means that, in the event you’re involved in a car accident, you’ll probably end up paying very little – or maybe even nothing – out of your own pocket for repairs.
Many of HUB International’s select group of highly-rated insurance carriers now offer a Disappearing Deductible endorsement to drivers. While you’ve probably seen or heard ads promoting this option, these commercials don’t necessarily do a thorough job of explaining the ins-and-outs of how a Disappearing Deductible works and who is eligible for it.
So, below, we share some important insights about this unique auto insurance endorsement that can help you determine if a Disappearing Deductible might be a match for you and your driving behaviors.
The idea of a Disappearing Deductible is actually pretty simple – the longer you go without making a claim against your auto insurance, the lower your insurance deductible becomes.
This insurance option is designed to incentivize drivers like you to follow the rules of the road, and adhere to other safe driving behaviors, with the ultimate goal of avoiding an accident.
While the goals of a Disappearing Deductible program may be the same across all carriers, each company has their own special twist on how this deductible program works. That’s why it’s best to sit down with your HUB International professional or give them a call to find out, first, if your current carrier even has this program, and then, second, to discuss the finer details of what your insurance provider offers. However, despite the variation among plans, we can provide you with some general details about how most Disappearing Deductible programs work.
There are three main components of any Disappearing Deductible option:
Disappearing Deductible programs reward you for a clean driving record by providing a monetary credit, at annual renewal time, that is applied to your collision deductible. Some carriers will credit you as much as $100 per year per policy, while others offer slightly less of a reward. Sometimes, a carrier will cap how much Disappearing Deductible reward you can accumulate, such as up to $500 in credits, but a few carriers we work with will allow you to continue to reduce your deductible down to zero over time. There are even some insurers that will automatically reduce your deductible by as much as $100 upon initial enrollment in the program.
Once you’ve started racking up annual deductible rewards, in the event of an accident, you should have to personally cover far fewer repair costs before your insurance coverage kicks in. It’s important to know, however, that regardless of who is at fault for the accident, you will not get any Disappearing Deductible rewards at annual renewal this time around. And, in fact, you’ll probably see your deductible go back up. Some carriers choose not to ding you too much for an accident; for example, instead of the $300 deductible decrease that you’d achieved over a few years, you might find yourself back to only a $100 deductible decrease should you be involved in a car crash. If you have a carrier that is not as forgiving though, you may find your deductible reverts back to the original deductible amount that you’ve worked so hard to lower.
You will have a higher premium if you choose this endorsement, and add roughly 5-6% to your total bill. But, if you insure multiple cars, then some companies will give you a significant break on the cost of adding Disappearing Deductible to your other vehicles. Plus, the money you can save by not having to pay any, or very little, deductible after a car crash, can certainly make up for any annual fee that you might pay to have Disappearing Deductible rewards.
If this information about a Disappearing Deductible sounds intriguing to you, then there is one more thing to evaluate – do you have the driving record that insurers want to reward?
Similar to Accident Forgiveness, the Disappearing Deductible endorsement is meant to reward the safest drivers on the road. If you’re a car, motorhome or motorcycle owner with a perfect driving record for the past several years, then it is definitely worth asking your HUB International professional to look into this option for you.
However, if you’ve been involved in an auto accident in the past three years, regardless of who is at fault, you’re probably not going to qualify for any company’s Disappearing Deductible program. Some carriers have even stricter eligibility requirements, excluding you from this and other similar rewards program if you’ve had any moving violations within the last three years as well.
That being said, what your driving history is today doesn’t necessarily predict your future behaviors. Even if your driving record is not pristine, it might still make sense to talk to HUB International about how to ensure that you qualify for this unique program in the future.
Call a HUB International professional today at (800) 243-8134 to find out if your insurance carrier offers a Disappearing Deductible program and whether you’re eligible for this and/or other credits, rewards, or discounts on your auto insurance.