At least two new companies, ZeroedOut and Deductify, offer auto insurance deductible coverage, promising savings for consumers who have or switch to traditional higher-deductible plans.

ZeroedOut, a financial technology company, launched nationwide on Oct. 14 and says its platform is designed to combat record-high auto insurance costs.

“By empowering drivers to confidently raise their deductibles to as high as $2,000, members can unlock immediate, substantial savings,” a press release from the company says. “When a member has an accident, ZeroedOut pays that high deductible on the member’s behalf, sending funds directly to the auto body shop.”

Co-founders Steven Morgan and Chris Hagans said they created the company to give drivers a smarter way to save on auto insurance without the fear of high out-of-pocket costs.

Examples of savings listed on the company’s website show an annual savings of $728 for a family of four with four cars and two teenage drivers, one male. ZeroedOut says male drivers. In each of the three examples, the savings are captured by increasing the plan deductible from $500 to $1,000. In this case, the family would pay $20 a month to ZeroedOut for full coverage of the deductible.

For a family of three with three regularly driven vehicles and a male teenage driver, an example of savings provided by ZeroedOut is $640. For a single father and his daughter, ZeroedOut says that by increasing their deductible to $1,000 and signing up for full payment of the deductible, they’ll pay $17 a month and save $86 a year.

Plans are also offered to cover only half of a $1,000 deductible or to cover a $500 deductible. Prices range from $10-$15 per month, depending on the number of vehicles, plus a one-time signup fee of $18 or $24.

Deductify, a membership-based platform, launched nationwide Sept. 2. It offers three monthly membership plans per car: $10.99 to cover a $1,000 deductible, $15.99 to cover a $1,500 deductible, or $19.99 to cover a $2,000 deductible. Each plan comes with merchant support, and the higher-cost plans offer priority or fast-track customer support. Yearly memberships are also offered.

“If your current collision deductible is less than $2,000, you can raise it — unlocking up to 40% savings on your existing policy,” the Deductify website states. “There’s no need to switch insurance companies or deal with complicated processes. We’ve made it simple to help you save more on your auto insurance — without the hassle.”

The site also states that the company was “built to provide real financial relief and restore fairness for drivers,” and that “potentially hundreds” can be saved on auto insurance and deductible expenses.

A press release from Deductify encourages consumers to raise their deductibles, stating it’s “a move that can lower premiums by 5–30% annually.”

In the release, an unnamed Deductify spokesperson said, “We built Deductify because we’ve seen the unfair reality of auto insurance up close. People are stretched thin, paying sky-high premiums and still facing $500, $1,000, or even $2,000 out-of-pocket before their insurance even kicks in. That’s broken. Deductify puts power back in the hands of drivers. We’re here to save families money, eliminate stress, and yes — to create happiness.”

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Featured image credit: AndreyPopov/iStock

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