Under certain conditions the insurer may agree not to apply the usual deductible. A deductible waiver is a policy provision or endorsement that eliminates the deductible for a specific type of claim or under defined circumstances, so the insurer pays from the first dollar of covered loss.

Waivers sometimes appear in auto policies when the insured is not at fault and the other party is identified and insured. Glass coverage and certain equipment-breakdown endorsements may also waive deductibles. The feature is a marketing advantage but has a cost that is reflected in the premium.

Policy language must be read carefully to determine exactly when the waiver applies. Assuming a waiver exists when it does not leads to unexpected out-of-pocket expense. Insurers track the claims cost of waivers to decide whether to continue offering them.

• Provision that removes the deductible for specified claims
• May apply in no-fault situations or special coverages
• Increases insurer’s expected payment
• Must be confirmed in policy wording