The terms disappearing, loyalty, or vanishing deductibles can be ambiguous.
The dollar value of the waived deductible is one way to comprehend the distinction.
Large loss deductible waivers typically appear in home insurance policies to address larger claims for losses exceeding tens of thousands of dollars.
Purchased or earned, disappearing deductible waivers or loyalty deductible waivers typically deal with much smaller amounts of “waived” deductibles.
Also available from some insurance companies are disappearing deductibles.
A disappearing deductible occurs when the insurance company reduces your deductible payment by a predetermined percentage or dollar amount for each year that you do not have any claims.
This kind of benefit is managed and governed differently by each company.
Although in today’s competitive market it is likely that you will find some variation of the concept if you shop around for insurance, some companies may not even offer the option.
