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Deductible Comparison Calculator

Compare deductible options by premium savings, break-even years and expected annual cost.

How the deductible comparison calculator works

A higher deductible lowers the premium but raises what you pay when a claim happens. The right choice depends on how often you expect claims and how many years it takes the premium savings to cover the extra deductible.

Formula

Break-even years = (Higher deductible − Lowest deductible) ÷ Annual premium savings. Expected cost = Premium + Claims per year × Deductible.

How to use it

1. List each deductible with its annual premium.
2. Enter how many claims you expect per year.
3. Compare break-even years and expected cost.

Worked example

Going from a $1,000 to a $5,000 deductible saves $800 a year; it takes five claim-free years to break even.

Frequently asked questions

Should I always choose the highest deductible?

Only if you can comfortably pay it and rarely have claims. If you claim more often than the break-even period, a lower deductible is better.

Does this work for commercial property?

Yes — the same logic applies to any per-claim deductible or retention.

Guides

• How to Choose a Deductible: Break-Even Years and Expected Cost
• Explaining Renewal Premium Increases to Clients

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