Insurance Deductible Calculator
This free deductible calculator compares two policy quotes and shows how many years and months the higher deductible takes to pay for itself. It converts percentage deductibles, like a 5% hurricane deductible, into real dollars, projects both costs over the years and claim frequency you set, and shows every line.
Break-even on the higher deductible
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Enter both options to see the comparison.
| Lower deductible | $0 |
| Higher deductible | $0 |
| Deductible difference | $0 |
| Annual premium saving | $0 |
Projected over 10 years, with 0.56 expected claims
| Keeping $0 | $0 |
| Keeping $0 | $0 |
Cash needed on the day of a claim, with the higher deductible
$0
This calculator is informational. It performs arithmetic on the quotes and assumptions you enter and does not recommend a deductible, rate a policy, name an insurer or quote premiums. It does not replace a licensed professional.
What does this calculator do?
It compares two versions of the same policy, one with a lower deductible and one with a higher one, and shows which costs less across the period you choose.
- Break-even in years and months. How long the premium saving takes to cover the extra deductible, using the quotes you were actually given.
- Percentage deductibles converted to dollars. Hurricane, named-storm and wind deductibles are often a percentage of your dwelling coverage. Enter 5% and $300,000 and the page shows the $15,000 you would owe.
- Your own claim frequency. The projection uses the rate you enter, not a national average buried in a footnote.
- Cash needed on the day. The deductible figure shown on its own, because that is the amount an insurer subtracts before paying.
- Every line of the math on screen, and the order you type the two options in does not matter.
How the break-even works
The formula is simple, and the page shows it working:
break-even years = deductible difference ÷ annual premium saving
A $500 deductible at $1,200 a year against a $1,000 deductible at $1,012 a year gives a $500 gap and a $188 yearly saving, so the break-even is 2.7 years, or 32 months.
What the break-even does not tell you on its own is how likely a claim is in that window. That is why this page also projects the full cost of both options over the years and claim frequency you set, so an early claim is priced in rather than ignored.
Percentage deductibles, the part most calculators leave out
| Deductible type | How it is written | On a $300,000 home |
|---|---|---|
| Flat | $1,000 | $1,000 |
| 1% named storm | 1% of dwelling coverage | $3,000 |
| 2% hurricane | 2% of dwelling coverage | $6,000 |
| 5% wind | 5% of dwelling coverage | $15,000 |
Most home policies carry two deductibles at once: a flat one for everyday claims, and a percentage one that only applies to named storms, hurricanes or wind. They are triggered by different events, and only one applies to any given loss. The percentage one is almost always the larger of the two, and because it is written as a small number on the declarations page, it is easy to read a 5% deductible as something minor.
What this tool does not do
- It does not tell you which deductible to pick. It performs arithmetic on the quotes and the claim frequency you supply. It does not recommend an amount, rate your policy, name an insurer or judge whether a figure suits your situation.
- It does not quote premiums. You enter the two annual premiums your insurer gave you. Pricing depends on your location, history, vehicle or property and each insurer's own rating, none of which arithmetic can produce.
- It does not cover health plans. Comparing a high-deductible health plan against a PPO also involves out-of-pocket maximums, copays and HSA contributions. That is a different calculation and cramming it in here would make both worse.
- It cannot know your real claim probability. It uses the frequency you enter. Industry figures put a collision claim at roughly one every eighteen years for an average driver, but your own history matters more than any average.
- It is not insurance advice. This page is informational and does not replace a licensed professional.
Is my information private?
Yes. Every figure you type stays in your browser and the arithmetic runs on your own device. Nothing is uploaded, logged or stored, there is no account, and there is no email field. Close the tab and it is gone. That is also why the numbers update as you type, with nothing to submit and no one to wait for.
Frequently asked questions
How do I know if a higher deductible is worth it?
The break-even tells you how long the premium saving takes to cover the extra deductible. Divide the deductible difference by the annual saving: a $500 gap with $188 saved each year breaks even at 2.7 years. This page runs that math and projects both options over the horizon you set.
What is a percentage deductible?
Some home policies set the hurricane, named-storm or wind deductible as a percentage of your dwelling coverage rather than a flat amount. A 5% deductible on a $300,000 home is $15,000, not a small fixed figure. Enter the percentage and the insured value and this page converts it to dollars.
Why is my hurricane deductible different from my regular deductible?
Most home policies carry two separate deductibles: a flat one for everyday claims and a percentage one that applies only to named storms, hurricanes or wind. They are triggered by different events and only one applies to any given loss. The percentage one is usually far larger.
How often do people actually file a claim?
It varies enormously by coverage and driver. Industry figures put a collision claim at roughly one every eighteen years for the average driver, and home claims are less frequent still. This calculator uses whatever frequency you enter, because your own history matters more than an average.
Does the deductible apply to my whole car insurance premium?
No. On an auto policy the deductible applies to collision and comprehensive coverage, the part that repairs your own vehicle. Liability coverage, which pays for damage you cause to others, carries no deductible. Enter the premiums your insurer quoted for each option rather than estimating a percentage.
What happens if I file a claim before breaking even?
You pay the higher deductible, but you keep the premium savings already banked. The projection on this page accounts for that: it multiplies your expected number of claims across the horizon by each deductible and adds the premiums, so an early claim is priced in rather than ignored.
Does this tell me which deductible to choose?
No. It performs arithmetic on the quotes and the claim frequency you supply, and shows every line of it. It does not recommend a deductible, rate your policy, name an insurer or judge whether an amount suits you. That decision is yours, with a licensed professional if you want one.
How much cash would I need on the day of a claim?
Exactly the deductible amount for the option you hold, which this page shows as its own figure. That is the sum an insurer subtracts before paying, so it has to come from somewhere on the day. For percentage deductibles it is the converted dollar amount, not the percentage.
Does it work for home, auto and health insurance?
It works wherever a flat or percentage deductible is traded against a premium, which covers auto, home, renters and named-storm coverage. Health plans are excluded because the comparison there also involves out-of-pocket maximums, copays and HSA contributions, which is a different calculation entirely.
Is anything I enter sent anywhere?
No. The numbers stay in your browser and the arithmetic runs on your device. Nothing is uploaded, logged or stored, there is no account and no email field, and closing the tab clears it. That is why the result updates the moment you type, with nothing to submit.
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Last updated: September 19, 2026