120+ more*Quotes generated for Insurify users within the last 10 days. Last updated on July 17, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on July 17, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
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Updated
When you purchase an auto insurance policy, you can choose your level of coverage and your deductible. The deductible is the amount of money you pay out of pocket in the event of a car accident, vehicle theft, or other claim.
If you choose a smaller deductible, you’ll pay less out of pocket after an accident, but your premium will cost more. If you choose a higher deductible, you’ll be responsible for more costs after an accident, but you’ll usually pay a lower premium.
Some companies also offer a no-deductible car insurance option. This means the insurance company covers the cost incurred from all damages in an accident. Here’s what you should know about no-deductible car insurance, and why it‘s important to compare car insurance rates with multiple deductible options.
A no-deductible policy may sound appealing because you don’t have to pay out of pocket before your insurance company covers a claim. But you can expect to pay a higher premium up front.
Availability of $0 deductible car insurance varies by insurance company, state, and type of coverage.
No-deductible car insurance could be a good idea if you have significant room in your budget, drive an expensive car, or have an increased risk of an accident.
A deductible is the amount you pay up front toward a covered claim. For example, let’s say a cracked windshield costs $600 to replace, and you have a $250 comprehensive deductible. You’d pay $250 toward the insurance claim, and your insurer pays $350. With no-deductible car insurance, your insurance covers the full cost of glass damage.
Only certain coverages, like comprehensive and collision coverage, have deductibles. Your car insurance policy typically has separate comprehensive and collision deductibles that you choose. You’ll pay higher premiums to have a lower deductible. Liability coverage typically has no deductible.[1]
Unlike health insurance deductibles, which usually reset annually, auto insurance deductibles apply to each claim.
Full-coverage policies start as low as $87/mo.
On average, zero-deductible car insurance costs $235 per month for full coverage, according to Insurify data. By comparison, the average monthly premium is $208 with a $500 deductible and $186 with a $1,000 deductible.
Insurers take on more risk when you choose low-deductible options. That means you’ll typically pay higher insurance premiums in exchange for lower out-of-pocket costs if you file a covered claim. If you want lower premiums, choose a higher deductible.
The table below shows average monthly full-coverage quotes for different deductible amounts.
Deductible Amount | Average Monthly Quote: Full Coverage |
|---|---|
| $0 | $235 |
| $500 | $208 |
| $1,000 | $186 |
Car insurance with a $0 deductible can be worth it if you want to avoid paying a deductible after a claim or don’t have enough savings to cover a higher deductible.
Let’s use the figures above as an example. For car insurance with no deductible, you’d pay $27 more per month, or $324 per year, than you’d pay with a $500 deductible. If you file one claim, paying an extra $324 in premiums instead of a $500 deductible means you’d spend $176 less.
If you don’t file a claim, the $500 deductible policy is the less expensive option overall.
*Quotes generated for Insurify users within the last 10 days. Last updated on July 17, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on July 17, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
If you’re trying to decide whether purchasing no-deductible insurance is the right fit for you, it can be helpful to consider the pros and cons of this type of coverage.
You won’t have to worry about whether you can afford to replace your car or make repairs if you’re in an accident.
You can select which items you want to include in no-deductible coverage and what you’ll pay a deductible for, so you have more flexibility.
Premiums for no-deductible policies are more expensive.
No-deductible options come with restrictions in some states. South Carolina, for example, doesn’t apply the same no-deductible options to tempered glass (car door windows) as it does to safety glass (your windshield).[2]
No-deductible car insurance could be a good idea for you if you fall into any of these groups:
Drivers with room in their budget: If you have wiggle room and can afford the higher premiums, a zero-deductible policy could help you avoid unexpected large expenses following an accident.
Drivers with an expensive vehicle: Some vehicles are more expensive to repair or replace than others. If the cost to repair the vehicle is prohibitive, a no-deductible policy can provide some breathing room in the event of an accident.
Drivers who have a higher risk of an accident: Since you have to pay a deductible every time you file a claim, it may be more affordable to invest in a no-deductible policy if you’re at a higher risk for accidents or incidents.
Several major insurers offer programs that can reduce your deductible to $0 over time for safe driving. Some also offer comprehensive coverage with no deductible, depending on your state and policy.
Nationwide: Vanishing deductible lowers comprehensive, collision, or both by $100 for each claim-free year, up to $500.
The Hartford: Set your collision deductible at $500 or higher to qualify for Disappearing Deductible. Your deductible will go down over time if you remain accident-free for five years, saving you up to $500.
Progressive: Deductible Savings Bank reduces your comprehensive and collision deductibles by $50 for each violation- and claim-free policy period until you file a claim or reach $0.
Allstate: Earn an instant $100 credit toward your collision deductible, plus an additional $100 each year — up to $500 — for staying accident-free with Allstate Deductible Rewards.
Liberty Mutual: Pay $30 in additional premium each year to the Liberty Mutual Deductible Fund, and the insurer will kick in $70, for a total of $100. You can earn $500 or more in credits to lower your collision deductible when you file a claim.
Travelers: The Premier Responsible Driver Plan includes Decreasing Deductible, which lowers your deductible by $50 for each policy term you remain ticket- and accident-free. Travelers also waives your deductible if your vehicle is a total loss after a covered claim through its Total Loss Deductible Waiver.
The type of deductible you choose isn’t the only way for you to save money on your insurance costs. Here are a few other tips to lower your insurance premiums:
Practice good driving habits. Insurance companies base their premiums on risk. Your driving history provides them with valuable information to assess your potential risk. Violations and previous accidents can result in higher premiums.
Bundle home and auto coverage. Many insurance companies offer discounts for policyholders who combine multiple policies, like auto and home. Even if you don’t own a home, you can use this to bundle renters and auto coverage or your auto and specialty vehicle policies.
Take advantage of safe driving programs. Many insurance companies offer discounts for utilizing safe driving habits. You may need to install a monitor in your car so the company can track your speed, stopping, and turning habits.[3]
Compare rates from multiple companies. When purchasing auto insurance, the simplest way to get the best price is to look at your options. Compare rates from at least three different insurers to get the best price for the coverage package.
Insurify partners with 120+ top insurers to show you the most accurate quotes
Not everyone can afford the high cost of a no-deductible policy. Luckily, you have alternatives to consider when shopping for auto insurance coverage.
Consider a high-deductible policy if you’re comfortable taking on more risk but don’t want to pay the steep price of no-deductible coverage. If you do pursue this route, make sure you can afford to pay this higher deductible if you ever need to file a claim.
A low-deductible car insurance policy may be better if you don’t have enough immediate cash to pay a higher deductible. It’s also a good option if you have a higher chance of getting in an accident or filing a claim.
Some insurance companies offer vanishing deductibles. This “deductible reduction” is available to safe drivers who don’t have a history of filing claims. With a vanishing deductible, the insurer rewards you for maintaining a good driving record and not filing claims by reducing your deductible by $50, $100, or more per year.
For example, suppose you have a $500 deductible. If you drive safely for three years but then have an accident, your insurer might only require you to pay $200 instead of the total deductible amount of $500. This is because your vanishing deductible reduced your rates by $100 for each year of safe driving.
If you still have questions about $0 car insurance deductibles, you can find answers to the most common questions people ask below.
Yes. Some insurers offer $0 deductible car insurance options for collision and comprehensive coverage. That means you won’t pay anything out of pocket for covered claims. But you’ll usually pay higher premiums for a lower deductible.
Several major insurers, including Allstate, Nationwide, and Progressive, offer ways to get $0 deductibles, such as vanishing deductible programs. Availability varies by insurer, state, and coverage type.
For example, New York requires a minimum $50 comprehensive deductible, but insurers can offer full glass coverage with a $0 deductible for windshield repair or replacement.[4]
How much more $0 deductible insurance costs depends on factors like your driving history, vehicle, location, and insurance company. Insurers take on more financial risk when you choose a $0 deductible, which usually means higher premiums.
It depends. A $0 deductible may be worth it if you want to avoid unexpected car repair costs or don’t have an emergency fund to cover repairs. The right deductible depends on your financial situation and the likelihood of filing a claim.
A vanishing deductible, or disappearing deductible, is an insurance benefit that lowers your deductible over time for maintaining a safe driving record. Not all insurers offer this feature, and program rules and deductible savings vary.
No. Depending on your state, a $0 deductible may apply to collision, comprehensive, and personal injury protection (PIP). Liability insurance usually doesn’t have a deductible. Some states have no deductible for uninsured motorist property damage, while others require one. The deductible amount varies by state.
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15 years at the Boston Globe
5+ years covering insurance industry
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
30+ years in financial services
Clinical Professor of Finance, University of San Diego
7+ years experience in data analysis
Ph.D. in Computational Biology
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