Comparison
High vs Low Deductible
Compare the annual premium saving against the deductible gap. If it takes fewer claim-free years than you realistically expect, the high deductible wins.
Option A
Low deductible
In favour
- Small out-of-pocket cost per claim
- Easier to file small claims
- Predictable exposure
Against
- Higher premium every year, claim or not
- Small claims can still raise your renewal rate
vs
Option B
High deductible
In favour
- Lower annual premium
- Discourages small claims that raise rates
- Saving compounds if you stay claim-free
Against
- Large cash requirement exactly when you have a loss
- Only works if the difference is actually saved
Settle it
Deductible vs Premium Calculator
break-even years = (deductible gap) ÷ (annual premium saving)
Estimates, not advice. Every figure here is produced from the inputs you enter and the formula printed on the page. Rules differ by state, carrier, lender and contract, so use these numbers to prepare for a conversation with a qualified professional rather than to replace one. See our full disclaimer.