Deductible vs Premium Calculator
See the breakeven — when does a higher deductible actually save you money?
Expected savings over 5 years (high deductible route)
$2,000
If probability × deductible-difference exceeds annual premium savings, the lower deductible wins. Use the worst-case scenario you can comfortably absorb.
Raising your deductible lowers your premium — but you’re trading a guaranteed annual saving for a bigger bill if you file a claim. Whether that trade is worth it depends on a number most people never calculate: the breakeven.
This calculator shows exactly how many claim-free years it takes for the premium savings to cover the extra you’d pay out of pocket at the higher deductible, so you can decide with math instead of a guess.
How this calculator works
The calculator takes the premium difference between two deductible levels (your annual saving) and divides the extra deductible exposure by it. That gives the breakeven in years — how long you’d need to go without a claim for the higher deductible to pay off. If you typically go longer than that between claims, the higher deductible wins.
What affects the number
- The premium saving from raising the deductible (the bigger the saving, the faster the payback)
- The size of the deductible increase (your added out-of-pocket exposure)
- How often you realistically file claims
- Whether you have the cash on hand to cover the higher deductible if a claim hits
- Your risk tolerance — a guaranteed saving vs. a possible larger bill
Frequently asked questions
Should I raise my insurance deductible?
Raise it if the premium savings pay back the extra deductible within a few years and you can comfortably cover the higher deductible in a claim. The calculator gives you the exact breakeven for your numbers.
How does a higher deductible lower my premium?
You’re agreeing to pay more before insurance kicks in, so the insurer’s expected payout drops — and they pass some of that back as a lower premium. Typical savings run 10–30% moving from a low to a high deductible.
What deductible should I choose?
Pick the highest deductible you could pay tomorrow without strain. That maximizes premium savings while keeping a claim affordable. If a $1,000 deductible would be painful, don’t go higher just to save a little.
This calculator provides general estimates for educational purposes only and is not insurance advice or a quote. Your actual rates and coverage needs depend on your specific situation and insurer.