How to use the deductible calculator
Get two prices for the same policy that differ only in the deductible, the amount you pay toward a covered claim before insurance pays the rest. Everything else, such as limits and coverages, must match. Enter both deductibles and both yearly premiums. If you have 6-month prices, double them.
Then enter how many years usually pass between your claims. The tool shows how much you save each year, how much more you pay when you claim, and whether the savings beat the extra cost over one claim cycle.
A second worked example
What the result means
| Result | What it tells you | What to consider |
|---|---|---|
| Worth it (net above $0) | Savings between claims beat the extra deductible | Keep enough cash to pay the higher deductible |
| Not worth it (net $0 or less) | You would likely pay more overall | Try a middle deductible, or keep the lower one |
| No savings | The higher deductible does not lower the price | Ask for a re-quote; something else may have changed |
The break-even years are the quickest check. If you usually go longer than that between claims, the higher deductible tends to win. If you claim more often, the lower one does.
How state and policy rules change the answer
Deductibles are set by your policy, but some rules come from states and lenders:
- Percentage deductibles. Many coastal homes have hurricane or wind deductibles set as a percentage of the home’s insured value, often 1% to 5% according to the Insurance Information Institute (accessed October 2026). Use our percentage deductible calculator for those.
- Lender limits. If you have a car loan or a mortgage, the lender may set a maximum deductible.
- Liability has no deductible. Raising your deductible does not change what you pay for liability claims; it affects claims for your own car or home.
Common mistakes
- Comparing quotes with different coverage. If the limits or coverages differ, the price gap is not just the deductible. Our how to compare insurance quotes guide shows how to line them up.
- Choosing a deductible you cannot afford. The savings mean little if a claim would leave you unable to fix your car or home.
- Ignoring how often you claim. Drivers with frequent small claims often lose money with a high deductible.
- Forgetting other savings. A deductible change is one lever; our insurance discounts guide covers others, and how car insurance rates are calculated explains what else moves your price.
When does this matter most?
It matters most at renewal and when you shop for a new policy, because that is when you can change your deductible without a mid-term change. Run the numbers with your own quotes, keep the higher deductible in an emergency fund if you choose it, and revisit the decision when your savings or claim history change. To compare full quotes side by side, try our quote comparison worksheet.
How the calculation works in plain words
The tool asks one question: over the time between two claims, do the premium savings add up to more than the extra deductible you would pay at the claim? First it finds the yearly savings by subtracting the cheaper premium from the more expensive one. Then it finds the extra risk, the difference between the two deductibles, which is the additional amount you would pay each time you claim.
Dividing the extra risk by the yearly savings gives the break-even years: how long you must go without a claim before the higher deductible has paid for itself. Finally, the tool multiplies the yearly savings by your years between claims and subtracts the extra risk. A positive number means you come out ahead over one cycle; zero or negative means you do not.
Questions to ask your insurer
Before you change your deductible, ask:
- What are the prices at each deductible level? Ask for at least two or three options, such as $500, $1,000 and $2,000, with everything else the same.
- Does the deductible apply separately to collision and comprehensive? On car policies they can differ, and you may want a lower comprehensive deductible.
- Are there separate deductibles for certain perils? Home policies may have special deductibles for wind, hail, hurricanes or earthquakes.
- Can I change the deductible mid-term? Some insurers allow it; others make changes only at renewal.
Keep a record of the answers so you can rerun the calculator at your next renewal.
Where to find your numbers
Your current deductibles and premium are on your declarations page. For the other option, ask your insurer or agent to re-quote with only the deductible changed, and note whether the price is for 6 or 12 months.
