Vanishing Deductible

A vanishing or disappearing deductible is a claim-free reward feature: your collision or comprehensive deductible shrinks each year you remain claim-free, by $50 to $100 per year up to a program cap. If you have a $500 deductible and 5 claim-free years with Nationwide, your deductible would drop to $0 at the time of a loss. The feature is sold as a paid add-on ($10 to $50 per 6-month term) at most carriers and is included free with The Hartford's AARP Disappearing Deductible benefit.

How it works at each major carrier

• Nationwide Vanishing Deductible: paid add-on. $100 off collision or comprehensive deductible per year claim-free, up to $500 total. Resets to $0 reduction after a claim.
• Progressive Deductible Savings Bank: comprehensive and collision deductibles reduce by $50 per 6-month policy period claim-free and violation-free. Capped at the original deductible (so a $500 deductible can disappear completely).
• Allstate Deductible Rewards: part of the Allstate Rewards suite. $100 off the collision deductible at bind + $100 reduction per claim-free year, up to $500. Separate from Accident Forgiveness.
• The Hartford (AARP) Disappearing Deductible: included in the AARP Platinum package at no additional premium. $50 off per year claim-free up to a $500 cap.

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Does the math work?

• High-risk household (teen drivers, long commute, prior at-fault incident within 5 years): yes. Expected-value math favors paying $20 to $50 per term for a feature that pays out $100 to $500 at claim time.
• Clean-record single driver, short commute: usually no. The feature reduces deductible, which only matters if a claim actually occurs; most clean-record drivers file one collision claim every 10 to 15 years on average.
• Already carrying accident forgiveness: complementary features; one protects your premium, the other protects your deductible. The combined add-on is often cheaper than buying each separately.

Important program rules

• A single at-fault claim typically resets the deductible to the original amount at most carriers (not all).
• Progressive's Deductible Savings Bank is unique in that it uses a 6-month policy period; most other programs use annual.
• The program applies to the deductible at the time of the loss, not retroactively.
• Not available in all states; verify at bind.