The Vanishing Deductible Catch

You may have seen commercials on TV advertising a “vanishing deductible” (also commonly called a disappearing deductible) and thought it was a great idea. The concept is pretty straight forward and seems easy to understand: If you are accident and moving violation free for a year, your car insurance deductible is reduced by a certain amount. If you drive enough years without an accident or moving violation, then it vanishes and you won’t have a deductible to pay if you happen to get into an accident in the future.

The key is to realise that the vanishing deductible isn’t quite as straight forward as it’s made out to be on those TV commercials. In fact, you might


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6 Responses to The Vanishing Deductible Catch

  1. Jo says:

    Think I’ll just stick with USAA…..rarely do I find an insurance company out there who can beat USAA. Maybe I’ll be paying $25 more on my premiums, but I’ve got all the bells and whistles along with that. I don’t have to omit anything to actually save.

  2. shiggity says:

    But deductibles are typically semiannual, so you’d save $80 for the first year after the deduction, and it would be cumulative, so you’d save $160 the next year and $240 the year after that.

    I call BS on this article.

  3. Jeffrey says:

    ??? The deductible amount is what you pay when you get in an accident, not what gets taken off your insurance payment…

  4. shiggity says:

    Yeah I realized basically right after I submitted this that pretty much all of it was wrong. Too bad I can’t edit/delete! Guess my stupidity is immortalized forever.

  5. Ginger says:

    This is the worse piece of false advertising I have seen in a long time. We have been accident free for 20 years had a small accident this week assumed we have vanishing deductible since NO where in the commercial does it say you have to request it oh and it is an option that you pay for. So with two cars it is $30 every six months and $10 per car for a total of $80 to get rid of $100 by the sixth year you are losing money. Nationwide this is the one that is going to cause me to go to another Carrier!

  6. GEICO makes tons of people happy (myself included). There’s a thread about it from ‘marywantsmoney’ in our forums section.

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