Deductible break-even calculator

How this works

The calculator treats the option with the smaller deductible as the lower one, whichever you enter first. Then it works out two amounts.

• Extra premium per year = premium of the lower-deductible option − premium of the higher-deductible option.
• Saving per claim = higher deductible − lower deductible.

Dividing the first by the second gives the claims per year at which the two options cost the same. Multiplying by the years you expect to keep the policy gives the claims needed over that time. If you claim more often than the break-even rate, the lower deductible costs less overall. If you claim less often, the higher deductible does.

The limits matter. A saving per claim only applies to a loss that is bigger than the deductible, so small losses you would not claim anyway do not count. The calculation ignores premium changes after a claim, which some insurers apply and which can add to the cost of claiming. It also assumes both quotes cover the same things on the same terms, and it cannot say how likely you are to have a loss. It does not consider whether you could pay the higher deductible out of your own pocket on the day. The wording of your policy and your insurer settle what is covered and what you pay, and rules differ by state, so ask your agent or insurer before you choose. Unfamiliar words are in the insurance terms glossary, and the renewal review checklist lists what to compare when a policy comes up for renewal.