Automotive

Is "disappearing deductible" worth the car insurance premium cost?

  • Last Updated:
  • Jan 18th, 2019 10:18 am
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[OP]
Jr. Member
May 5, 2012
141 posts
60 upvotes

Is "disappearing deductible" worth the car insurance premium cost?

My car insurance company (Aviva) is offering $50 per car per year for this disappearing deductible. This additional insurance premium would reduce a 100% deductible of my deductible ($500), and the coverage would reduce by 20% for every year I am claim free over a period of 5 years.
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Aug 22, 2011
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te1648 wrote:
Jan 17th, 2019 12:08 pm
My car insurance company (Aviva) is offering $50 per car per year for this disappearing deductible. This additional insurance premium would reduce a 100% deductible of my deductible ($500), and the coverage would reduce by 20% for every year I am claim free over a period of 5 years.
Insurance on top of insurance...just in case!
With that being said, I would be the loser on this one, as I haven't had an at fault claim in over 20yrs of driving.
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Jul 26, 2007
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I had free disappearing deductible from allstate. Had $0 deductible one time. If I were to make a clam, it would reset back to $1000. Year later, with no claims, I switch to another insurance because it was cheaper and but with $1000 deductible.

If you think you are gonna use the claim, it might be worth it but for me saving $50 or few hundred to switch to cheaper insurance is better for me atleast.
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Sep 1, 2004
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te1648 wrote:
Jan 17th, 2019 12:08 pm
My car insurance company (Aviva) is offering $50 per car per year for this disappearing deductible. This additional insurance premium would reduce a 100% deductible of my deductible ($500), and the coverage would reduce by 20% for every year I am claim free over a period of 5 years.
You have to ask yourself that in the event of an accident can you afford to lose $500? And if you can't, why are you driving? Take the bus.

Remember that typical insurance is around $2000 that covers up to $70K vehicle. $50 for $500 is huge profit margin for the insurer.
[OP]
Jr. Member
May 5, 2012
141 posts
60 upvotes
Aviva used to give the disappearing deductible to me free (or get buried in the total premium), after years without a claim. Then this year, Aviva begins to charge $50/ yr to reduce 20% deductible ($100 value). I have 2 cars, so at $50 additional premium each

So, it would take 5 yrs, or $250 additional premium, to reduce my $500 deductible to zero. But, I need to continue paying the $50/ yr to get the zero deductible, and the deducible would go back up to $500 if I get into an accident.

Therefore, for a careful or claim free driver, it may not be worthwhile to pay this additional premium for the disappearing deductible. But, then again, accidents can happen anytime and to anyone.
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Jun 26, 2011
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Not worth it. You are paying $50/year each car to reduce 20% of the deductible, which is $100 on a regular $500 deductible. That's just for a chance that you may have an accident. I'd rather shell out $500 when i have a claim.
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Feb 11, 2007
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alanbrenton wrote:
Jan 17th, 2019 1:09 pm
It doesn't cost me to have the declining deductible with TDMM with years of claim-free driving.
I believe TDMM only offers it if you have a $500 deductible. I have a $1000 deductible with TDMM so don't qualify, but my rates are cheaper than a $500 one. So you really are paying for the feature.
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engineered wrote:
Jan 17th, 2019 1:52 pm
I believe TDMM only offers it if you have a $500 deductible. I have a $1000 deductible with TDMM so don't qualify, but my rates are cheaper than a $500 one. So you really are paying for the feature.
No wonder you are paying $700 vs. my $750ish. :)

I have accident forgiveness so might as well have deductible at $500.
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alanbrenton wrote:
Jan 17th, 2019 1:55 pm
No wonder you are paying $700 vs. my $750ish. :)

I have accident forgiveness so might as well have deductible at $500.
I've been thinking about upping my deductible to $2k with a $2 mil policy. Need to see how that changes costs.
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engineered wrote:
Jan 17th, 2019 2:11 pm
I've been thinking about upping my deductible to $2k with a $2 mil policy. Need to see how that changes costs.
Which insurer are you with, TDMM?

I think I'd rather keep it at $1m and just have a dash cam in the vehicles.
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alanbrenton wrote:
Jan 17th, 2019 2:12 pm
Which insurer are you with, TDMM?

I think I'd rather keep it at $1m and just have a dash cam in the vehicles.
Yes TDMM.

Others mentioned that $2mil coverage may be a good idea with higher and higher claims. $1mil may not cover you and dashcam doesn't help if it is your fault.
Last edited by engineered on Feb 12th, 2019 11:49 pm, edited 1 time in total.
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engineered wrote:
Jan 17th, 2019 2:18 pm
Yest TDMM.

Others mentioned that $2mil coverage may be a good idea with higher and higher claims. $1mil may not cover you and dashcam doesn't help if it is your fault.
then better make sure it's at the worst, 50/50

dash cams will definitely help in that regard
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My liability is at 5 million and I also have 'free' accident forgiveness through Intact. 9* driver with 0 at fault claims/accidents in 30 years+ of driving.
For legal topics and discussions, the opinion, guidance, and thoughts provided are my own and are not considered to be legal advice, in any manner.
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Buy a piggy bank and put in $100 a year for 5 year, done.

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