Glossary
Disappearing deductible
An optional program that lowers your collision or comprehensive deductible by a set amount for each claim-free period, sometimes to zero.
Also called: vanishing deductible, diminishing deductible, decreasing deductible
A disappearing deductible reduces your deductible over time as a reward for driving without claims and, in some programs, without violations. Insurers market it under names such as vanishing, diminishing or decreasing deductible. It is usually an optional add-on with its own charge, and it applies to collision coverage and sometimes comprehensive.
The details differ by insurer. Nationwide's Vanishing Deductible, for example, takes $100 off when added, after a 30-day wait, and another $100 for each year of safe driving, up to $500. Progressive's Deductible Savings Bank credits $50 for each claim- and violation-free six-month period and can reach $0. Using the credits on a claim generally resets the program. In Nationwide's published example, a $500 deductible with $300 in credits means you pay $200 on a covered claim.
It pays off only if you eventually file a claim while holding credits, so compare the program's cost with the credits you would realistically use, and with simply buying a lower deductible. Some programs look at every driver on the policy, so one household member's accident can stop the credits for everyone. Availability varies by insurer and state; several programs are not sold in California. See vanishing deductible programs: are they worth it?.
Last reviewed October 4, 2026