What happens if you file a claim and have to pay a deductible?
Good news — that amount you’ve been earning the last few years for being a safe driver will be deducted from the deductible amount you owe.
Let’s put it into perspective: you rear-end someone on your way home from work and have to file a collision claim to fix the front end of your vehicle. Before your insurance company will cover the expensive repairs, you owe a $500 deductible. You have a vacation coming up and really don’t want to have this added expense taken from the money you’ve been saving. Thankfully, this is the first claim you’ve filed in three years, meaning you earned $400 worth of credit and knocked your deductible amount to $100. Now you’ll only have to pay $100 before your insurance kicks in to cover the rest!
Another benefit is that, even after a claim, we’ll start you at $100. So your available benefits never drop below $100 — because we want to make sure you’re prepared for the unexpected.
What if I pay my insurance premium every six months?
No problem. If your policy renews every six months, you’ll still benefit from the Diminishing Deductible. Instead of $100 reduced at your policy renewal, we’ll credit your deductible $50.
So what’s the catch?
There isn’t one! We want to help you be more comfortable with the out-of-pocket costs that come with filing a claim. It’s a way to proactively manage the financial hits that can come with the unexpected.
Once you’ve paid to add this coverage to your policy, you’ll continue to earn a lower deductible each year up to your policy maximum. If it’s ten years down the road and you still haven’t filed a claim, that reward will stay put until you need to use it — hopefully you never need to! Just make sure you don’t let your policy lapse for more than 60 days, cancel your policy or remove this coverage from your policy since you won’t be able to get the accumulated amount back.