Deductible Break-Even Calculator
Raising your deductible lowers your premium — but it also raises what you pay out of pocket when you claim. Enter the two quotes you were given to see whether the cheaper, higher-deductible option actually pays off.
Deductible Break-Even Calculator
How this works
Your deductible is what you pay toward a covered claim before the insurer pays the rest. Choosing a higher deductible lowers your premium because you are accepting more of the risk yourself.
This calculator compares the two quotes you provide: it subtracts the higher-deductible premium from the lower-deductible premium to get the annual saving, then divides the extra out-of-pocket cost per claim by that saving to get the break-even period.
If you expect to go longer than the break-even period without a claim, the higher deductible tends to win; if you claim more often, the lower deductible tends to win. The tool only uses the numbers you enter — it does not assume any market rate.
Frequently asked questions
How do I find the two premiums?
Ask your insurer or get quotes for the same coverage at two different deductible levels (for example $500 and $1,000). Use the actual quoted annual premiums.
Does raising my deductible affect my lender's requirements?
Yes. If you have a loan or lease, the lender may cap how high your deductible can be. Check your contract before changing it.
What is a typical deductible?
Common comprehensive and collision deductibles are $500 and $1,000, but the right level depends on what you can comfortably pay out of pocket after a loss.
Does a higher deductible lower my premium a lot?
It varies by insurer, vehicle, and driver. That is exactly why you should enter your own quotes above rather than rely on a general percentage.
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