Deductible Calculator

How the calculator works

The calculator compares two quotes for the same coverage that differ only in the deductible. It converts the premium difference to a yearly figure, then divides the extra you would pay after a claim by that yearly saving:

Break-even years = (higher deductible minus lower deductible) divided by yearly premium savings

For example, moving from a $500 to a $1,000 deductible adds $500 of risk per claim. If the higher deductible saves $200 a year, it takes 2.5 years of savings to cover one claim. If you usually go more than 2.5 years between claims, the higher deductible tends to come out ahead.

When a higher deductible makes sense

• You could pay the higher deductible from savings tomorrow without borrowing.
• The break-even period is shorter than the time you usually go between claims.
• You would not file small claims anyway, to protect your claims history.

When to keep a lower deductible

• A large repair bill would strain your budget.
• You park on the street, commute long distances or live where hail and theft are common.
• The premium difference is small, so the break-even period runs many years.

You can also set collision and comprehensive deductibles separately. A lower comprehensive deductible for glass and weather, with a higher collision deductible, is a common mix. For the bigger picture, see How to Lower Premiums and the Budget Calculator.

This calculator gives general estimates from the numbers you enter. It is not a quote and not advice about your policy. Actual premiums and claim costs depend on your insurer, your state and your circumstances.