Insurance · Auto and home
Deductible break-even.
A higher deductible lowers your premium but raises what you pay when you claim. Enter the two quotes to see how many claim-free years it takes to recoup the extra risk, and how often you could claim before the lower deductible wins. Runs in your browser.
The two quotes
Break-even
Fill the form and press Calculate.
Worked example
A $500 deductible costs $1,800 a year and a $1,500 deductible costs $1,500. The higher deductible saves $300 a year and adds $1,000 to any claim, so it takes 3.3 claim-free years to recoup one claim. The break-even claim chance is 30% a year. If you think the chance of a claim is 10%, the expected yearly cost is $1,850 with the lower deductible and $1,650 with the higher one, so the higher deductible is expected to cost $200 a year less.
How it works
Saving = lower-deductible premium - higher-deductible premium. Extra cost on a claim = higher deductible - lower deductible. Years to break even = extra cost / saving. Break-even claim chance = saving / extra cost. Expected yearly cost = premium + claim chance x deductible. Triple-I notes that the larger the deductible, the less you generally pay in premiums, and that raising it can save money; the actual savings come from your quotes.
Sources and basis (opened 2026-10-08): arithmetic on the quotes and claim chance you enter. The link between larger deductibles and lower premiums is described by Triple-I (Insurance Information Institute), “Understanding your insurance deductibles”.
FAQ
Is a higher deductible worth it?
It is if you go enough years without claiming. Divide the extra deductible by the yearly premium saving to see how many claim-free years that takes.
What is the break-even claim chance?
It is the yearly claim chance at which both deductibles cost the same on average. If you expect to claim more often than that, the lower deductible is cheaper.
Does a higher deductible always lower the premium?
Generally, the larger the deductible the less you pay in premiums, according to Triple-I, but the saving varies. Compare real quotes.
What should I assume for my claim chance?
Use your own history and risk. This tool has no claim-rate data, so the line is optional and only as good as your estimate.
Can I afford the higher deductible?
Check that you could pay it in cash. A saving on the premium is no use if the deductible would force you onto credit.
Disclaimer
Educational arithmetic on your quotes, not insurance advice. It ignores claim-free discounts and premium increases after a claim, which can change the answer.