“Vanishing” can be a good thing – especially when it applies to fees and bills. Who wouldn’t like to see a bill disappear? This can be become a reality when it comes to vanishing deductibles. With this new feature offered by a few car insurance companies it is possible to see your deductible reduced eventually to zero.

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How A Vanishing Deductible Works

Not all car insurance companies off this feature at the moment, but it works like this. Let’s say your original deductible amount is set at $500. For every year that you don’t file a claim, $100 is knocked off the deductible amount. The limit is $500, so after five years of accident-free driving, you could be deductible free. This is why it is “vanishing”, because the deductible gradually decreases until it ceases to exist.

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Why Do Insurance Companies Offer This?

This new feature is a part of a broader effort by car insurance companies to attract safe drivers. Auto insurers love policyholders who pay premiums and don’t file claims. They really help increase the insurance companies’ profit margins. Thus, insurance companies offer incentives, such as vanishing deductibles, to lure safe drivers. This should also make it obvious that the best way to save on car insurance is to drive as safe as possible. Obeying all traffic laws can lead to significant insurance savings. And another way to save is to get multiple car insurance quotes. Enter your zip code in the box below and find the cheapest car insurance possible.