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Insurance Deductible Comparison Calculator
Raising your deductible lowers your premium, but costs more when you claim. Enter the premium for a low and a high deductible, how often you expect to claim and a typical claim size to see the break-even point and which option costs less on average.
Last updated:
Premiums are entered
Low deductible option
$
$
High deductible option
$
$
Your claims
0.2 = one claim every 5 years. Look at your own history.
$
$
Enter your values to see the result.
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How to use the Insurance Deductible Comparison Calculator
Choose how premiums are quoted: per year, 6 months or month.
Enter the low deductible and its premium, then the high deductible and its premium.
Estimate how often you claim (0.2 means once every five years) and a typical claim size.
Optionally enter your emergency savings.
Compare the results: break-even frequency, expected yearly cost and the 0–3 claim table.
The deductible break-even formula
Break-even claims per year = yearly premium saving ÷ (high deductible − low deductible) Expected yearly cost = premium + claims per year × min(claim size, deductible)
Example: a $500 deductible costs $1,600 a year and a $1,000 deductible costs $1,450. You save $150 a year but pay $500 more per claim, so the break-even is 150 ÷ 500 = 0.3 claims a year, or one claim every 3.3 years. If you claim once every five years (0.2 a year), the expected cost is $1,700 with the low deductible and $1,650 with the high one, so the high deductible saves about $50 a year on average.
Break-even years between claims
How many claim-free years it takes for the premium saving to pay for one claim at the higher deductible. Rows are the deductible increase; columns are the yearly premium saving.
Deductible increase
$50/yr saved
$100/yr saved
$150/yr saved
$250/yr saved
$250 ($250 → $500)
5.0 years
2.5 years
1.7 years
1.0 year
$500 ($500 → $1,000)
10.0 years
5.0 years
3.3 years
2.0 years
$1,000 ($1,000 → $2,000)
20.0 years
10.0 years
6.7 years
4.0 years
$1,500 ($1,000 → $2,500)
30.0 years
15.0 years
10.0 years
6.0 years
If you typically go longer than this between claims, the higher deductible is likely to save money.
Things the math doesn't show
Small claims can raise premiums. Many people skip filing small claims anyway, which makes a higher deductible more attractive.
Cash flow matters. A cheaper policy is no bargain if paying the deductible would mean borrowing on a credit card.
Some deductibles are percentages. Home policies may have wind, hail or hurricane deductibles of 1% to 5% of the dwelling coverage; enter them in dollars.
Lenders may set a maximum deductible for financed cars and mortgaged homes.
Frequently asked questions
How do I know if a higher deductible is worth it?
Divide the yearly premium saving by the extra amount you would pay per claim. If $150 a year is saved and the deductible rises by $500, the break-even is 0.3 claims a year, or one claim every 3.3 years. If you claim less often than that, the higher deductible usually costs less over time.
Is a $500 or $1,000 deductible better for car insurance?
It depends on the premium difference and how often you claim. If the $1,000 deductible saves more than a few hundred dollars every few years compared with how often you have at-fault or comprehensive claims, it tends to come out ahead, as long as you can afford the $1,000 when a claim happens.
What is the break-even point for a deductible?
It is the claim frequency at which both options cost the same on average: premium saving ÷ extra cost per claim. Below that frequency the high deductible is cheaper; above it the low deductible is.
Does this work for health insurance?
Not directly. Health plan deductibles apply once per year across all care and interact with coinsurance and an out-of-pocket maximum. Use a health insurance plan comparison calculator for that; this tool is for per-claim deductibles like auto, home, renters or pet insurance.
What if my claim is smaller than the high deductible?
Then the extra cost of the high deductible is only the part of the claim between the two deductibles, and with the high deductible you would probably not file at all. The calculator uses min(claim, deductible) for each option.
Should my emergency fund cover my deductible?
Yes, ideally. A higher deductible only makes sense if you could pay it out of savings without borrowing. Many people keep at least the largest deductible across their policies in an easy-to-reach account.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.