Insurance Deductible Savings

Free Insurance Deductible Savings calculator with clear step-by-step results.

About Insurance Deductible Savings

Raising a deductible trades a certain premium saving against an uncertain out-of-pocket cost. Multiplying the additional exposure by claim probability gives its expected value, and the years-to-fund figure answers the practical question: how long you must go claim-free before the higher deductible is genuinely paid for.

Formulas

Expected benefit

Benefit = premium saving - (higher deductible - current deductible) x claim probability

Years to fund

Years = additional exposure / annual premium saving

Worked example

With the default values below, Insurance Deductible Savings returns Expected annual benefit of switching of $180.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Current deductibleminimum 0 $: 500 $
Higher deductible optionminimum 0 $: 1,500 $
Premium at the current deductibleminimum 0 $: 1,450 $
Premium at the higher deductibleminimum 0 $: 1,150 $
Chance of a claim in a yearaccepts 0–100 %: 12 %

Results

Expected annual benefit of switching: $180.00
Premium saving per year: $300.00
Extra you pay if you claim: $1,000.00
Years of savings to cover the extra exposure: 3.33 years

Step by step

1Values used
2Expected benefit
3Years to fund
4Expected annual benefit of switching= $180.00
5Premium saving per year= $300.00
6Extra you pay if you claim= $1,000.00
7Years of savings to cover the extra exposure= 3.33 years

Assumptions and limits

The result is derived only from the 5 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation or fees or charges into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Not insurance advice. Policy terms, per-claim versus aggregate deductibles and regulatory requirements vary. Confirm the exact wording with your insurer before changing cover.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Not insurance advice. Policy terms, per-claim versus aggregate deductibles and regulatory requirements vary. Confirm the exact wording with your insurer before changing cover.

Frequently Asked Questions

What claim probability should I use?

Your own history is the best guide. Broad averages are around 5-8% a year for home and 6-12% for auto collision, but they vary enormously by location and driver.

Is a positive expected benefit reason enough to switch?

Only if you can absorb the higher deductible in cash without borrowing. Expected value ignores the risk of a bad year landing before the savings have accumulated.