Here at SkiSafe, customers can eliminate their deductibles with a disappearing deductible option.
Adding a disappearing or “vanishing” deductible is a great way to save on the cost of boat insurance. Let’s dig into this concept a little further.
What is a disappearing deductible?
A disappearing deductible, also referred to as a “vanishing deductible” or “diminishing deductible,” is a type of incentive program offered by some insurers. It’s an optional add-on to your policy that rewards accident-free boaters with lower insurance deductibles.
While each policy will vary on how it works, the basis is the same - the longer you go without filing a claim, the lower your deductible becomes. Depending on your coverage and policy details, it may disappear altogether!
How do disappearing deductibles work?
Your boat insurance deductible is the amount you self-insure on a loss. If you select a disappearing deductible option, the cost of that deductible will become less expensive after each policy period of claim-free boating.
The definition of “clean boating” will vary depending on the insurance company. Your best bet is to stay accident-free and violation-free for optimal discounts and savings. Every time you renew your policy without having an accident or violation, your deductible will go down. This decrease can come in the form of a percentage or a set dollar amount.
- Example: You have a $1,000 deductible with an annual disappearing deductible discount of 25%. After a loss-free year your deductible will lower from $1,000 to $750.
How can I get a disappearing deductible?
If this piques your interest, you can definitely inquire about adding a disappearing deductible to your SkiSafe policy! You can do so directly through your SkiSafe online dashboard, or if you have more questions, feel free to reach out to us directly.
Is a disappearing deductible worth it?
For some boaters, knowing that you’ll pay less out-of-pocket after a claim provides peace of mind that makes it all worth it. However, there are other things to consider when deciding whether a disappearing deductible is for you or not.
First up is your budget. You may have to elect a higher premium to get the disappearing deductible option. This is kind of like an annual fee for the benefit.
Check if this add-on option would increase your premium and if it’s in your budget.
- Operating Watercraft
How are you behind the wheel? Since much of this discount depends heavily on no major claims and a safe boating record every year, it’s important to determine whether a disappearing deductible will work for you.
If you have an excellent record and want to save money long-term, this could be a good option.
- Crunch the Numbers
Calculate how much you could save if you get into an accident after a few years of accident-free boating. How much will your deductible decrease in that time? Will your premium increase for the time being?
Crunch the numbers and figure out your potential savings.
- Your Boat’s Value
If you own and operate older watercraft, the disappearing deductible discount may not be worth it. The value of the watercraft and potential savings may not outweigh the cost of repairs.
Disappearing Deductible Alternatives
There are a few other options to consider if a disappearing deductible is not worth it or not an option for you.
- Set Aside a “Rainy Day Fund”
One alternative is to set aside a “rainy day fund”. If you find yourself ineligible for a disappearing deductible, a disciplined accident emergency fund can provide similar benefits. For example, if you have a $500 deductible - save $500 if there comes a day where you need to file a claim.
- Adjust Your Policy
You could also adjust your policy when balancing premium and deductible considerations. Lowering your deductible in exchange for a higher premium will also decrease your financial exposure to a covered claim.