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:

  • You earn $50 every 6 months (if you have a semi-annual policy), or

  • $100 every year (if you have an annual policy).

• 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.