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Diminishing Deductible Auto Insurance
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Diminishing Deductible Auto Insurance

You do what you can to stay safe on the road, but accidents happen. And if they do, the last thing you want to do is pay hundreds — if not thousands — of dollars for your deductible to repair your vehicle.

We understand the financial setbacks the unexpected can cause. That’s why we’re offering Diminishing Deductible as a new feature you can purchase for all types of vehicles:


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!

Earn Credit Immediately

We’ll credit your deductible $100* from day one. Let’s say you have a $500 deductible. Good news — it just dropped to $400.

Watch Your Deductible Diminish

Your deductible will continue to reduce each year at policy renewal, up to your policy’s maximum limit, as long as you maintain your policy with us.

Savings When You Need It

If you have a claim, you’ll pay a reduced deductible amount thanks to your Diminishing Deductible coverage. Your deductible then resets, so you’ll go right back to earning a reduced deductible amount.

Why Choose American Family Insurance

Not only will you save money for being a safe and responsible driver, you’ll also be in great company. Join the many American Family Insurance customers who decided to take control of what they pay by opting into our Diminishing Deductible program.

Diminishing Deductible FAQs

If you still have questions about how Diminishing Deductible works, we understand. We’re here to help you make the right decision for you. We’ve collected some common questions and answers below to help make the choice a little easier.

  1. Good news — that amount you’ve been earning the last few years for being a safe driver will be deducted from the deductible amount you owe.

    Let’s put it into perspective: you rear-end someone on your way home from work and have to file a collision claim to fix the front end of your vehicle. Before your insurance company will cover the expensive repairs, you owe a $500 deductible. You have a vacation coming up and really don’t want to have this added expense taken from the money you’ve been saving. Thankfully, this is the first claim you’ve filed in three years, meaning you earned $300 worth of credit and knocked your deductible amount to $200. Now you’ll only have to pay $200 before your insurance kicks in to cover the rest!

    Another benefit is that, even after a claim, we’ll start you at $100 when your next renewal occurs. So, your available benefits never drop below $100 — because we want to make sure you’re prepared for the unexpected.

  2. No problem. If your policy renews every six months, you’ll still benefit from the Diminishing Deductible. Instead of $100 reduced at your policy renewal, we’ll credit your deductible $50.

  3. Yes! Diminishing Deductible auto coverage is available in every state American Family covers.

  4. There isn’t one! We want to help you be more comfortable with the out-of-pocket costs that come with filing a claim. It’s a way to proactively manage the financial hits that can come with the unexpected.

    Once you’ve paid to add this coverage to your policy, you’ll continue to earn a lower deductible each year up to your policy maximum. If it’s ten years down the road and you still haven’t filed a claim, that reward will stay put until you need to use it — hopefully you never need to! Just make sure you don’t let your policy lapse for more than 60 days, cancel your policy or remove this coverage from your policy since you won’t be able to get the accumulated amount back.

Is a Diminishing Deductible for Auto Insurance Worth it?


Consider this:

  • When you have a claim, you’ll pay less out of pocket thanks to Diminishing Deductible.
  • Your deductible will continue to reduce each year at policy renewal, up to your policy maximum.
  • You'll begin earning a lower deductible immediately. Depending on your deductible amount, you could reach a point where you pay nothing out of pocket towards your deductible!

Start Saving With Diminishing Deductibles for Auto Insurance Today

When you insure your vehicle with American Family, you don’t just gain a piece of paper with your policy — you gain extra protection and peace of mind. Our Diminishing Deductible is designed to ease some of the stress that comes with the claims process — specifically the out-of-pocket expenses.

Connect with your American Family Insurance agent to find out more about our Diminishing Deductible and how its immediate earning benefits can help you financially protect what matters most. Interested in Diminishing Deductible coverage for your home insurance? We have that too! Learn more about our home insurance Diminishing Deductible.

Earn Credit Towards Your Auto Deductible

Proactively manage the financial hits that can come with the unexpected.

Some coverages may not be available in your state. Available at mid-term renewal for some existing policyholders. Please speak with your agent to learn more about your coverage options.

*Or $50 if you have a 6-month policy term.