Glossary
Deductible waiver, defined
A provision that removes the policyholder's share of a claim in a specific situation, so the insurer pays from the first dollar. It is usually tied to a circumstance the carrier chooses to reward or considers outside the policyholder's control, and it is written into the policy or added by endorsement rather than decided claim by claim.
In practice
The common versions: glass claims on auto policies where windshield repair is paid in full; collision claims where the other driver is identified and clearly at fault; and, in some states, uninsured motorist property damage. Home policies rarely include one, though a few carriers reduce the deductible after several claim-free years. The condition matters: a waived collision deductible for a not-at-fault crash usually requires the other driver to be identified, so a hit-and-run does not qualify. Waiving glass raises the premium a little, and whether it is worth buying depends on the vehicle's glass and how much of it carries sensors.
A worked example
Suppose a driver carries a $500 collision deductible with a waiver for not-at-fault losses. A stranger backs into the parked car and leaves a note. The repair is $2,000; the insurer pays all of it, then pursues the other driver's carrier. Had the car been hit by an unknown vehicle, the driver would pay the $500 first. Hypothetical figures.
Applies to: Auto Insurance