Disappearing Deductible
What Does Disappearing Deductible Mean?
A disappearing deductible is a type of coverage that pays only for losses above a specified amount and does not cover any losses below that threshold. However, over time, the insured’s responsibility for deductibles decreases until they ultimately pay nothing, with the insurance covering the losses entirely.
Insuranceopedia Explains Disappearing Deductible
The disappearing deductible is a feature found in some insurance policies. In certain car insurance plans, this option serves as an incentive for drivers with a good driving record. In these cases, the insured’s deductible is reduced each year they drive without having an accident. After several years of accident-free driving with a disappearing deductible on their policy, they will no longer be responsible for paying a deductible, and the insurer will cover the entire loss in the event of an accident.
