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Is vanishing deductible car insurance a good deal?

Benjamin Franklin once said "A penny saved is a penny earned." You can realize some savings with vanishing deductibles, IF you are in an accident.

The national average cost for one year of auto insurance premiums so far in 2010 is around $1,500. If your deductible with say Nationwide starts as $500, and after five years the deductible will be $0. But you only realize $500 in savings on your deductible if you're in an accident.

Now let's say you save $100 per year on your car insurance premium by shopping around. That's a fixed reduction, every year. As long as the carrier doesn't raise your rates. you'll save $500, five years without having to be in an accident. If you lower your car insurance premiums by shopping (certain savings), you would come out way ahead.

Geico says you can save an average of over $300 by switching from one insurer to the next 15 minutes could save you 15% or more car insurance. If that’s the case, sticking with Nationwide for 5 years so you can save when you get into an accident is a waste of time.

Nationwide's program is the best known example of vanishing deductible, and their commercial played fives times while I wrote this article. Apparently nationwide is taking a page out of Geico's playbook, and buying massive amounts of TV advertising. Brand recognition. Nationwide is also like every other car insurance company, who wants to collect premiums higher than claims.

Allstate Safe Driving Bonus Check

Other carriers have despairing deductibles, Allstate had Safe Driving Bonus Check, where Allstate paid you back premium for being a safe driver. provides a credit to Allstate insured drivers that do not have a claim within a specified policy term (at least 6 months).

Hartford's Vanishing Deductible Plan

The Hartford has the amount removed each year the policyholder goes without an accident is only $50. While the annual discount amount is half that of Nationwide Insurance, The Hartford does not place a limit on the ultimate amount by which the deductible can be reduced. With The Hartford, the policyholder earns less of a discount each year, but ultimately can end up the with no car insurance deductible at all, even with a $1000 deducible. well I carry vanishing deductible gimmick nearly realized a one-time savings IF you are in an accident.

Use the manila free box at the top of this page to search for the best car insurance carriers in your area. Input your zip code now!

The Hartford offers its disappearing deductible plan with its Advantage Plus car insurance. This is Hartford’s higher end car insurance. This includes first accident forgiveness, waiver of deductible for not all accidents, and $100 waiver for using approved repair shop. Check on 5% or more Hartford's advantage plus car insurance. so your vanishing deductibles savings are more than lost a certain fixed premium expense.

Nationwide Vanishing Deductibles

Nationwide Insurance has spent millions promoting its vanishing deductible car insurance plan. Nationwide Insurance markets it's disappearing deductible plan so that if you do not have an accident claim, new wall "save" on that one-time event.

With the Nationwide Insurance vanishing deductible plan, inin anevery year that a policyholder goes without an accident claim, $100 is subtracted from their deductible. The maximum amount that can be deducted from the deductible amount is $500. Policyholders receive $100 removed from their deductible amount instantly just for enrolling in the Nationwide Insurance vanishing deductible program..

Nationwide charges policyholders $60 annually to qualify for vanishing deductibles. If the policyholder has multiple vehicles insured with Nationwide, they can add the additional cars for $10 each annually.

After the first accident, it remains to be seen what happens to your deductible. Depending on whose at fault, your driving record, tickets given for the accident, etc. what happens to your (vanishing) deductible. To see if the car insurance provider in your area with the best car insurance rates also offers a disappearing deductible option enter your ZIP at the top now!

Summary:

If Nationwide's premiums are competitive with other carriers, remembering and the $60 annual fee they charge you to enroll in the despairing deductible program, and vanishing deductibles actually cost you.

Based on my experience, whenever you have to jump through several hoops to save money, it complicates things and you don't save anything. By design. the harder it is to shop, the harder it is to save. Skip the vanishing deductible gimmick and shop multiple carriers, and lower your fixed certain cost.

Don't waste time or any about saving on a random, unexpected event. When shopping for car insurance, treat the vanishing premiums as a non event.

Written by Craig J. Casey

Financial Writer helping people with their insurance problems on the net since 1998.

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