What is Diminishing Deductible coverage?
Some insurers now offer Diminishing Deductibles for an additional annual premium. These are also known as Deductible Dividends or Deductible Credits. Purchasing this coverage is a way you can reduce your out-of-pocket expense at the time of an accident. You do this by earning a Collision Deductible Credit (typically $100) for each year you are accident free over a specified number of years. For example, if your policy deductible is $500 and you experience an accident after two consecutive accident-free years, you may receive a credit of $200 to reduce your deductible to $300. In no case can your Deductible Credits exceed $500 or reduce your deductible lower than -0-. Other conditions and limitations may apply depending upon the insurers offering this coverage.
