What is a Vanishing Deductible?

A vanishing or disappearing deductible is a deductible that becomes less expensive over time. Learn more here.
Written by Rob Shapiro
Reviewed by Kathleen Flear
A vanishing deductible, or a disappearing deductible, is a program offered by insurance companies in which your
car insurance deductibl
e will lower a certain amount every year if you are not involved in any car accidents.
For example, if you are enrolled in this program with an $800 deductible but avoid any car accidents for a year, your deductible could be lowered to $700. The specific terms, including the amount that your deductible will be reduced by, will vary between insurance providers.
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by matching you to a list of competitive quotes tailored to your driving needs in under a minute. 
Keep reading to learn if a vanishing deductible is right for you. 

How do vanishing deductibles work?

Not every car insurance company offers a vanishing deductible program to their customers. If yours does, you should ask them for specifics as each insurer will offer a different percentage and terms for the deductible reduction. 
Each program offers the incentive of a lower deductible if you remain accident-free for over a year. Some programs stipulate that if you remain accident-free for five years, your deductible can be entirely erased.  
If you’re interested, ask your provider if they offer this program. If so, you’ll need to confirm the following:
Enrolling in this program shows your intention to adopt safe driving habits. To brush up on road safety, you can take a
defensive driving course
. Otherwise, you won’t be able to reap the benefits of a vanishing deductible. 
Key Takeaway A vanishing deductible works by rewarding drivers with a discount on their deductible every year if they are accident-free.
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Which insurance companies offer vanishing deductibles

As mentioned, not every insurance company offers the option of a vanishing deductible. Here are a few insurance companies that do offer vanishing deductibles and the specific terms required to enroll in their programs.


has a program that lowers your deductible by $100 annually with a maximum reduction of $500. This would apply to both your comprehensive and collision insurance
You are required to have a clean driving record before you can sign up for Nationwide’s vanishing deductible program. The program costs $60 per year, plus $10 for each additional car.

Liberty Mutual

Liberty Mutual
’s vanishing deductible program rewards those who are enrolled with $100 off their collision deductible every year if they’re not involved in any accidents. As a bonus, they take off $100 after signing up. 
Other program perks include not needing a clean driving record to enroll. Another bonus is that there is no extra charge if you have more than one car
Your deductible can go all the way to zero except in New York where there is a $100 minimum. The cost for this program is $50/year. 
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offers a variation on a vanishing deductibles program—“Deductible Awards” grant a discount of $100 from your deductible upon enrollment, and then another $100 every year if you maintain a clean driving record. 
There is a big caveat, though. You must buy a Gold or Platinum Your Choice Auto Package. There is no set price for these packages as they vary per driver and state. 

The Hartford

The Hartford rewards its Advantage Plus Plan members with a disappearing deductible. You must be accident-free for five years to qualify.
Once you sign up, your collision deductible will go down by $150 and then $50 every year after if your driving record remains immaculate. Some states allow a deductible to reach zero whereas others stipulate a minimum. 
There is no set fee for the program, but be prepared to pay an extra charge of 5% to 10% in addition to the cost of a normal car insurance package.
Key Takeaway Only some insurance companies offer vanishing deductibles including Nationwide, Liberty Mutual, Allstate, and The Hartford. Each program has its own rules and terms. 

Should you go with a vanishing deductible?

There is no easy answer to this question as it comes down to what is best for your driving needs and budget. 
If saving money on your deductible is important to you, then you should definitely consider registering. Also, if you are a safe driver with a clean driving record, then you can only gain from the program. Remember, though, that these programs cost money every year so it’s a good idea to do the math beforehand to make sure it’s worth it.
The best course of action is to speak with your insurance company or broker to learn all of the pros and cons of signing up for a vanishing deductible program. 

Alternatives to a vanishing deductible

There are some options if you are ineligible for a vanishing deductible program or you think it wouldn’t fit your budget. Some proven options include:
  • You can set aside money every month in a savings account. For instance, if you have a higher deductible, say $1200, you can gradually put enough money aside so that you have the funds ready in the case of an insurance claim. 
  • In some cases,
    accident forgiveness
    is a better option than a vanishing deductible. This has nothing to do with your deductible, but you could be forgiven for your first accident, which has a similar effect of keeping your rates lower. The details of this coverage type vary per company.

How to find affordable car insurance

Vanishing deductible or not, you should review your
car insurance
to make sure you’re not overpaying.
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