Diminishing Deductible
COVERAGE DESCRIPTION: Not all insurers offer a Diminishing Deductible, but those that do typically reduce the collision deductible by $100 each year (also applies to their first year of coverage), subject to $100 as a minimum, for retaining your insurance with the same company.
CLAIM EXAMPLE: An insured slid off the road and damaged the front body panel causing $1,800 in damage. Because their insurance included Diminishing Deductible coverage, and they were in their 3rd year of coverage, they only $700 of their collision deducitble, which otherwise would have been $1,000.
IS THIS OPTION RIGHT FOR YOU?: It’s a great option that rewards staying with the same insurer. Costs vary and generally is a percentage of each vehicle’s collision premium.
COVERAGE APPLICATION: Coverage MUST apply to all vehicles that carry physical damage.