Paying for car insurance can be a drain on your wallet, even if you have a good driving record. Luckily, there are a few different ways that insurance companies can reward safe drivers. Many companies have save driving discounts, but some also offer diminishing deductible policies.
What is a Deductible?
Your deductible is the amount of money you have to pay out of pocket before your insurance kicks in. For example, if you get into an accident and you have a $500 deductible, you pay $500 towards the repairs, and the insurance company covers the rest. The lower your deductible is, the less money you pay when you file a claim.
How Does Diminishing Deductible Work?
Diminishing deductible is pretty much exactly what it sounds like. Every year you don’t file a claim, your deductible goes down, usually stopping at a pre-determined amount. When you do end up needing to file a claim, you won’t have to pay as much to have your vehicle repaired. Some companies also have a total loss policy included. If you have this on your policy you will not have to a pay a deductible at all if your car is completely totaled.
Get Rewarded for Having a Clean Driving Record
If you are a responsible driver, signing up for diminishing deductible is beneficial. You may not have filed any claims yet, or file them very rarely, but that does not mean you will never get into an accident. From adverse weather conditions to the behavior of other drivers, sometimes the circumstances are not in your favor. With a diminishing deductible, you can protect your wallet. While an accident may be rare for safe drivers, it can be financially devastating if you have a high deductible.
Do you want to add diminishing deductible to your auto insurance? Contact the experienced agents at Conexion Insurance Agency today by calling (727) 314-2523.