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Diminishing Deductible Auto Insurance

Diminishing deductibles for auto insurance reward safe drivers by reducing deductibles each year you’ve been accident free. Learn more about diminishing deductibles from American Family Insurance.

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Diminishing Deductible Auto Insurance

You do what you can to stay safe on the road, but accidents happen. And if they do, the last thing you want to do is pay hundreds — if not thousands — of dollars for your deductible to repair your vehicle.

We understand the financial setbacks the unexpected can cause. That’s why we’re offering Diminishing Deductible as a new feature you can purchase for all types of vehicles:

You do your best to be a safe driver.

While you can’t always control the road conditions or other drivers on the road – now you can take more control of what you pay when the unexpected happens.

American Family Insurance has a new, affordable way to protect your vehicle and your wallet from surprise expenses.

Diminishing Deductible is an optional coverage that helps you reduce your out-of-pocket expenses when you need to file a car insurance claim.

Here’s how it works: You’ll earn a lower deductible immediately when you add Diminishing Deductible Coverage to your auto policy.

That’s right, we credit your deductible $100 on Day 1!

Then, we’ll credit your deductible $100 each year, up to your policy maximum.

And you can watch your deductible diminish over time!

What does this mean for you?

Suppose you’ve been claims free for several years. And then, during a sudden rainstorm, you hydroplane and rear-end the car ahead of you.

Thankfully, your American Family auto policy covers collision damage.

Usually, you would need to pay your $500 deductible before your insurance covered the remaining balance.

Except you have Diminishing Deductible coverage!

Because this is the first auto insurance claim you’ve filed in the five years since you first added Diminishing Deductible to your vehicle policy, American Family has credited your deductible 500 dollars.

Your deductible has dropped to zero dollars – so you pay nothing out-of-pocket and American Family covers everything.

That’s diminishing deductible working for you!

Following your claim, your deductible resets to year 1 with your deductible credited $100.

So, you can go right back to continuing to earn a reduced deductible amount again.

Plus, you can get diminishing deductible coverage for more than just your car or truck – it’s available for boats, RVs, motorcycles and more!

Isn’t it time you earned a reward for being a responsible driver?

Learn more about how Diminishing Deductible can help you protect your savings from the unexpected.

Contact your American Family Agent today!

What Is a Diminishing Deductible?

With this coverage, we’ll credit (lower) your deductible to help you better prepare for the out-of-pocket expenses if you have a claim. Our Diminishing Deductible rewards you for being a safe driver by crediting your deductible $100* each year up to your policy maximum. It’s one of the ways we give you control over what you pay.

So how does it work? It’s simple! We’ll walk you through so you know exactly how you can benefit from our auto insurance with Diminishing Deductible.

How Do Diminishing Deductibles Work for Auto Insurance?

We’ll start with the basics. For certain coverages, like collision and comprehensive, you’ll select a deductible. A deductible is a set amount of money (typically ranging between $500 to $2,000) you’ll pay out of pocket before your insurance kicks in to cover the repairs or replacement costs if you file a claim.

At American Family Insurance, we know that a deductible isn’t always the easiest thing to pay after an accident. But with our Diminishing Deductible, we hope to ease that burden by offering a way to reduce your collision and comprehensive deductible amount.

Let’s take a closer look!

Earn Credit Immediately

We’ll credit your deductible $100 from day one.* Let’s say you have a $500 deductible. Good news — it just dropped to $400.

Watch Your Deductible Diminish

Your deductible will continue to reduce each year at policy renewal, up to your policy’s maximum limit, as long as you maintain your policy with us.

Savings When You Need It

If you have a claim, you’ll pay a reduced deductible amount thanks to your Diminishing Deductible coverage. Your deductible then resets, so you’ll go right back to earning a reduced deductible amount.

Why Choose American Family Insurance

Not only will you save money for being a safe and responsible driver, you’ll also be in great company. Join the many American Family Insurance customers who decided to take control of what they pay by opting into our Diminishing Deductible program.

Diminishing Deductible FAQs

If you still have questions about how Diminishing Deductible works, we understand. We’re here to help you make the right decision for you. We’ve collected some common questions and answers below to help make the choice a little easier.

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Is a Diminishing Deductible for Auto Insurance Worth it?


Consider this:

  • When you have a claim, you’ll pay less out of pocket thanks to Diminishing Deductible.
  • Your deductible will continue to reduce each year at policy renewal, up to your policy maximum.
  • You'll begin earning a lower deductible immediately. Depending on your deductible amount, you could reach a point where you pay nothing out of pocket towards your deductible!

Start Saving With Diminishing Deductibles for Auto Insurance Today

When you insure your vehicle with American Family, you don’t just gain a piece of paper with your policy — you gain extra protection and peace of mind. Our Diminishing Deductible is designed to ease some of the stress that comes with the claims process — specifically the out-of-pocket expenses.

Connect with your American Family Insurance agent to find out more about our Diminishing Deductible and how its immediate earning benefits can help you financially protect what matters most. Interested in Diminishing Deductible coverage for your home insurance? We have that too! Learn more about our home insurance Diminishing Deductible.

Earn Credit Towards Your Auto Deductible

Proactively manage the financial hits that can come with the unexpected.

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