What is a vanishing deductible?
A vanishing deductible, also referred to as a "disappearing deductible" or "diminishing deductible," is an incentive or optional coverage offered by some insurers to reward accident-free or ticket-free drivers. With this option, your deductible decreases or "vanishes" the longer you drive without an accident or violation. Progressive offers disappearing deductibles for car, RV, motorcycle, and boat policies.
How does a vanishing deductible work?
Your car insurance deductible is the amount you pay when you file a claim before your insurance coverage kicks in. When you select a disappearing deductible option, your insurer will typically reduce your deductible for each policy period that you don’t have an accident or violation. This decrease can either be a percentage or a set dollar amount. Every time you renew your policy without having an accident or a violation, your deductible decreases until you get to $0.
Avoid paying your auto deductible with Progressive’s Deductible Savings Bank coverage*
If you purchase our Deductible Savings Bank Coverage, we'll subtract $50 from your auto policy's comprehensive or collision deductible for each six-month auto policy period ($100 if you have an annual policy) that you go without an accident or violation.
If you insure your RV, boat, or motorcycle with us and purchase Disappearing Deductibles,* we'll subtract 25% from your policy's comprehensive or collision deductible for each annual policy in which you're accident or violation-free.
Is a vanishing deductible worth it?
If you don’t drive regularly and rarely get into accidents or file claims, it may not be worth paying for vanishing deductible coverage. But, if you have a tendency towards auto accidents and consistently file auto insurance claims, a vanishing deductible program can save you money:
Example:Suppose the deductible on your six-month auto policy is $500 and the cost for vanishing deductible coverage is $12/per policy. Your deductible will be reduced to $450 after six months without an accident or violation. After one year, your deductible will drop to $400 and will continue to go down for each policy period you remain accident and violation-free. Assuming you file a claim after two years and your deductible is $300, you’ll have saved $152 as your deductible shrank by $200 and the cost for coverage only totaled $48.
If you choose to continue Progressive’s Deductible Savings Bank coverage, the amount resets and you'll keep earning the $50 benefit for each policy period in which you have no accidents or violations.
How much is disappearing or vanishing deductible coverage?
The cost for a disappearing deductible option is generally affordable but depends on your insurer.
Looking for additional ways to save on your auto policy? Check out our numerous driver and loyalty-based discounts.
How to add disappearing deductible coverage
New Progressive customers
Current Progressive customers
Log in to your policy or call us at 1-866-749-7436 and see if our coverage for disappearing deductibles can be added to your policy.