If you’re a safe driver who avoids car accidents and maintains a clean driving record, you may want to take advantage of an additional coverage known as a diminishing deductible. With this distinct coverage, your insurance deductible can decrease by a certain amount, depending on your auto insurance.
What Is a Diminishing Deductible?
A diminishing deductible is typically purchased as an addition to your auto insurance policy. However, your auto insurer may also offer it as an extra perk. If it’s a free incentive, it may be worth it; but if you have to pay extra for it, you want to understand all your choices for saving money. For instance, if you’re already a safe driver, you may be better setting money aside for your deductible rather than paying for additional coverage you may never use. ISG Auto Insurance, LLC can explore with you the various cost-saving options you may be able to use.
Is a Diminishing Deductible Right for Me?
Diminishing deductibles have specific rules and eligibility requirements. It’s a good idea to understand how this additional coverage could impact your auto insurance policy. These are items to consider:
· Your driving record—To add the diminishing deductible feature to your auto insurance, your insurer will probably require that you have a clean driving record—meaning no at-fault accidents.
· A deducible reset—Your deductible may be reset to its original total amount if you make specific changes to your auto insurance, such as removing your comprehensive and collision coverage and then adding them back later.
· Claim limitations—A diminishing deductible usually allows only one claim to be filed and then your deductible resets. This reset means you have to start over, and your deductible diminishes based on your policy. Also, no matter how many drivers you have on your auto insurance policy, you can only use the reduced deductible once.
What Are Other Ways To Save?
If you don’t qualify for a diminishing deductible or decide you don’t want to pay extra for it, there may be other ways to save money on your auto insurance. Be sure to ask your ISG Auto Insurance, LLC agent whether any of the following may be available to you:
· Safe driver discounts—Your insurance company may offer you a safe driving discount, which can range from 10% to 40% if you keep a clean driving record.
· UBI-based insurance—UBI tracks your driving data, including speeding, hard stops, mileage and your phone use while driving. It uses a device installed in your car’s OBD-II port, a smartphone app or through systems built into your vehicle, such as OnStar or ConnectDrive. UBI programs reward safe drivers.
· Auto insurance discounts—Many insurance companies offer various driver discounts. These are a few you may want to consider:
o Automatic payment discounts—Get these when you set up automatic premium payments.
o Defensive driving discounts—If you take a defensive driving course, you may qualify for extra savings.
o Full payment discounts—If you pay your policy premium in full, you may realize insurance savings.
o Good student discounts—If you’re a student who maintains good grades, you may qualify for savings.
o Multi-policy discounts—When you purchase other types of policies in addition to auto insurance, such as homeowners, renters, condo, boat, motorcycle or RV insurance, you may be able to get an additional discount on your auto insurance.
o Multi-vehicle discounts—If you have more than one vehicle in your household on one insurance policy, you may be able to get a multi-car discount.
o Responsible payer discounts—If you pay your auto policy premium on time, you may be able to receive an additional discount.
Don’t Wait Until It’s Too Late
Car accidents can happen to anyone at any time. Unfortunately, this means that a lot of time and effort you may apply to your diminishing deductible can be quickly undone. Talk with us about whether a diminishing deductible is the right choice or if another way can help you save on your auto insurance.