What Is a Diminishing Deductible?
With this coverage, we’ll credit (lower) your deductible to help you better prepare for the out-of-pocket expenses if you have a claim. Our Diminishing Deductible rewards you for being a safe driver by crediting your deductible $100* each year up to your policy maximum. It’s one of the ways we give you control over what you pay.
So how does it work? It’s simple! We’ll walk you through so you know exactly how you can benefit from our auto insurance with Diminishing Deductible.
How Do Diminishing Deductibles Work for Auto Insurance?
We’ll start with the basics. For certain coverages, like collision and comprehensive, you’ll select a deductible. A deductible is a set amount of money (typically ranging between $500 to $2,000) you’ll pay out of pocket before your insurance kicks in to cover the repairs or replacement costs if you file a claim.
At American Family Insurance, we know that a deductible isn’t always the easiest thing to pay after an accident. But with our Diminishing Deductible, we hope to ease that burden by offering a way to reduce your collision and comprehensive deductible amount.
Let’s take a closer look!