Diminishing Deductibles

A diminishing deductible is a reward for being a good driver with no claims.

Every six or twelve months, depending on your policy, the insurer will give you a specific dollar credit to reduce your COLLSION deductible (not comprehensive).

Say, for instance, you have auto coverage with a deductible of $500, the upfront amount you would pay in case of a collision. 

Your carrier will credit you these “deductible rewards”, typically $50 / 6 months or $100 annually at renewal for being claim free. Year 2 your deductible would then be, for all intents and purposes, $400, the next year $300, etc. 

Should you remain claim free for 4-5 years, you may wish to raise your Collision deductible because it would be significantly reduced.