Deductible Calculator
Calculate insurance deductible amounts, out-of-pocket costs, and potential premium savings. Compare different deductible options for auto, home, and health insurance.
Step 1: Insurance Details
How Deductibles Work
A deductible is the amount you pay out-of-pocket before your insurance coverage kicks in. Higher deductibles typically mean lower premiums.
Step 2: Insurance Type & Options
Typical Deductible Ranges
Auto: $250-$2,500
Home: $500-$5,000
Health: $1,000-$10,000+
Higher deductibles = Lower premiums but higher out-of-pocket costs
Deductible Analysis Results
Annual Premium Savings
Deductible Options Comparison
| Deductible Amount | Annual Premium | Annual Savings | Break-even Period |
|---|
Deductible Savings Formula
Annual Savings = Current Premium – New Premium
Where:
• New Premium = Current Premium × (1 – Savings Rate)
• Savings Rate = Typically 5-30% per $500 deductible increase
• Break-even Period = (New Deductible – Current Deductible) ÷ Annual Savings
Key Considerations:
• Higher deductibles reduce premiums but increase out-of-pocket costs
• Consider your claim frequency and emergency fund
• Insurance companies price deductibles based on risk
Example Calculation
Example: Increasing Auto Insurance Deductible
Current Premium: $1,200 per year
Current Deductible: $500
New Deductible: $1,000
Savings Rate: 15% for $500 increase
Calculation:
New Premium = $1,200 × (1 – 0.15) = $1,020
Annual Savings = $1,200 – $1,020 = $180
Increased Out-of-pocket = $1,000 – $500 = $500
Break-even Period = $500 ÷ $180 = 2.8 years
Need Professional Insurance Advice?
Connect with our insurance experts for personalized deductible recommendations, coverage analysis, and savings optimization for your specific needs.
Get Professional Advice