Insurance deductible calculator: compare premiums and risk

Questions covered in this guide

What does this deductible calculator tell you?

It compares two annual premiums and flat deductibles using a loss amount you enter. First it shows the premium difference. Then it compares a no-claim year with one identical modeled covered loss. It does not choose a policy, retrieve prices or predict whether you will make a claim. Review the policy terms before using its deductible as an input; a special-peril or percentage deductible may not fit this model.

Which numbers should match before you compare?

Use equivalent coverage and annualize both premiums. If one quote covers six months and the other twelve, enter the correct period for each. Copy the deductible that applies to the same kind of loss in both policies. The TDI shopping guide helps separate coverage and price questions; its state-specific requirements should not be treated as rules for every state.

Worked example: $500 versus $1,000 deductibles

Invented inputs: option A has a $1,800 annual premium and $500 deductible; B has a $1,560 annual premium and $1,000 deductible. B saves $240 in a no-claim year. For one modeled $5,000 covered loss, premium plus deductible is $2,300 for A and $2,560 for B. In that scenario B costs $260 more for the year despite the lower premium. Limits, exclusions and other policy differences are outside this arithmetic.

What does the break-even time mean?

Using the same example, the extra $500 of deductible exposure divided by $240 annual premium savings is about 2.08 years. This is how long those savings would take to equal that extra out-of-pocket amount if premiums stayed unchanged. It is not a prediction that claims happen every 2.08 years. For a loss below one of the deductibles, the model caps your loss payment at the entered loss, so the comparison can change.

Which situations need a different calculation?

Keep these limits visible:

More than one claim can mean paying more than one deductible.
A percentage deductible needs its stated dollar basis and triggering peril.
A loss below the deductible does not create a deductible-sized insurance payment.
Exclusions, coverage limits and settlement terms can change the outcome.

No claim probability is selected by default. Any probability you enter is your assumption, not an insurer’s forecast or a prediction supplied by this site.

What should you ask before choosing?

Ask whether you could pay the applicable deductible when a covered loss occurs and whether the two quotes provide equivalent protection. Use the coverage comparison to record limits and unresolved terms. If the premium recently changed, check the annual premium increase calculation separately rather than treating a renewal change as evidence that a different deductible is best.

Putting it into practice

Break-even time uses the extra out-of-pocket amount for the entered loss, which can be smaller than the difference between deductibles. It is a scenario comparison, not a claim forecast or a recommended deductible.

Sources and supported claims

Homeowners policies can contain different deductibles and coverage terms. The tool models a flat deductible only; percentage or special-peril terms require separate review.
Source ↗ · national · Checked 2026-10-12

TDI recommends comparing the same coverage, deductibles and payment arrangements; this calculator uses supplied premiums rather than generating insurance quotes.
Source ↗ · state · Checked 2026-10-13

More help with this decision

Sources & scope

NAIC: Auto insurance coverage ↗
National education; policy and state requirements vary · Checked 2026-10-12

NAIC: Homeowners insurance consumer guide ↗
General coverage, exclusions, deductibles; policy wording controls · Checked 2026-10-12