Free calculator

Insurance deductible calculator

A higher deductible cuts the premium and raises what you pay when something happens. Put both quotes side by side and see how long you have to go without a claim for the trade to pay off.

Everything stays in your browser. Nothing is sent to us, and the result is an estimate, not a quote or advice.

How this works

Four sums, all of them checkable:

Annual saving = current premium − higher-deductible premium. This is the only money the trade actually earns you.
Extra out-of-pocket per claim = higher deductible − current deductible. This is what the trade costs you, each time you claim.
Break-even = extra out-of-pocket ÷ annual saving. That is how many claim-free years it takes for the saving to cover one claim's extra cost. After that many years you are ahead.
Ten-year cost = (premium × 10) + (deductible × expected claims), worked out for each option. The cheaper total wins at the claim rate you entered, and the last row shows what switching does to that total — a negative number is money saved.

We also solve for the claim count where the two options cost exactly the same over ten years: (annual saving × 10) ÷ extra out-of-pocket. Above that number of claims, the higher deductible loses.

What it ignores. The time value of money — a dollar saved now is worth slightly more than a dollar spent later, which tilts things a little further toward the higher deductible. Percentage deductibles, which move with the insured value instead of sitting at a fixed dollar amount. Separate wind, hail, hurricane and earthquake deductibles, which are often a percentage and are not the one on your declarations page. Any effect on premiums at renewal from claiming. And claim timing: the maths assumes an average, while real claims arrive all at once, in the year you can least afford them.

The real question is not on this page: could you write the cheque for the higher deductible tomorrow, without borrowing? If not, the arithmetic is irrelevant — take the lower one.

Next step

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