---
title: Let’s Talk Diminishing Deductibles: A Small Perk That Can Pay Off Big
---

# Let’s Talk Diminishing Deductibles: A Small Perk That Can Pay Off Big

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## Let’s Talk Diminishing Deductibles: A Small Perk That Can Pay Off Big

- Posted on Sunday, April 13, 2025

You know the sinking feeling that comes after a fender bender—right after you say, “I’m okay,” your next thought is usually, “Ugh, that deductible...” But what if that deductible was actually _less_ than you expected?

If you’re insured with **Auto-Owners** , you may have access to one of our favorite policy add-ons: the **Diminishing Deductible**. And while the name might sound like a magician’s disappearing act, it’s actually a real savings tool that rewards you just for driving safely.

### How does it work?

Auto-Owners’ Diminishing Deductible is an optional feature that **reduces your Collision and Comprehensive deductibles** over time—automatically.

Here’s how:

- You get a **$100 credit** right when you add it to your policy.

- Then, for each renewal where all drivers remain accident-free:

- These credits stack up to a **maximum of $500**.

- And when you file a claim? That credit is used to reduce what _you_ pay out of pocket.

Let’s say you have a $500 collision deductible and have built up $300 in Diminishing Deductible credits. If you get in an accident, you’d only pay $200 instead of the full $500. Not bad, right?

### Who’s eligible?

To add this benefit, all drivers on your policy must be **at-fault-accident-free for the past year**. If someone on the policy has an at-fault accident during the term, your deductible credit freezes for the remainder of that term and resets to $100 at the next renewal.

Also, at least one vehicle on the policy needs to carry **Collision or Comprehensive coverage with a deductible above $0**.

### Why we like it:

Because it rewards you for being a safe driver _and_ softens the blow if something does go wrong. It’s a smart way to build a cushion for the unexpected—like a little emergency fund built into your insurance policy.

Want to see if you qualify for Diminishing Deductible? We’re happy to take a look and see if this benefit makes sense for your policy. Just reach out and we’ll walk you through it—no magic wand required.

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