Deductible vs. Premium Calculator
Calculate your potential savings by raising your collision/comprehensive deductible. Find out how long it takes to "break even" on the risk.
Enter your current premium and deductible choices to see your break-even analysis.
If you drive accident-free for this long, the savings in your pocket will exceed the extra cost of the higher deductible.
What is an Auto Insurance Deductible?
Your deductible is the amount of money you agree to pay out-of-pocket before your insurance company steps in to cover a claim. This applies primarily to Collision (hitting another car/object) and Comprehensive (theft, weather, vandalism) coverage.
For example, if you have a $500 deductible and cause $3,000 worth of damage to your car:
- You pay the first $500 (to the repair shop).
- The insurance company pays the remaining $2,500.
When Does a Higher Deductible Make Sense?
Raising your deductible from $500 to $1,000 is one of the fastest ways to lower your premium. It makes sense if:
- You have an Emergency Fund: You must have $1,000 readily available in savings to cover the cost if an accident happens tomorrow.
- You are a Safe Driver: If you haven't filed a claim in 5+ years, you are statistically paying for coverage you rarely use.
- The Break-Even Period is Short: If the savings pay for the risk difference in under 3 years (36 months), it is generally considered a good financial move.
Methodology
This calculator estimates savings based on typical industry pricing structures. While exact formulas are proprietary to each insurer, raising a deductible generally affects the Collision/Comprehensive portion of your bill. We estimate a 7-9% total bill reduction when moving from $500 to $1,000, and smaller percentages for higher tiers. The "Break-Even" calculation divides the difference in deductibles by the monthly savings.
Frequently Asked Questions
Does my deductible apply to Liability coverage?
No. Liability coverage (which pays for damage you cause to others) generally has no deductible. You start paying from dollar one for the other person's repairs.
Is a $2,000 deductible too risky?
It depends on your finances. If a $2,000 repair bill would force you into debt or prevent you from fixing your car, then yes, it is too risky. Stick to a deductible you can afford to pay in cash immediately.
What if the damage is less than my deductible?
If you have a $1,000 deductible and the repair costs $800, your insurance pays nothing. You pay the full $800, and it is usually better not to file the claim at all to avoid a rate hike.
Does a higher deductible affect my credit score?
No. Your deductible choice has no impact on your credit score.
Can I change my deductible at any time?
Yes, you can typically call your agent and change your deductible effective immediately. However, you cannot change it after an accident has occurred to cover that specific claim.
Do I have to pay the deductible if I am not at fault?
Usually, no. If the other driver is 100% at fault, their insurance pays for your repairs, and you pay nothing. If you use your own insurance first (to speed things up), you pay your deductible, but your insurer will try to recover it (subrogation) and refund you later.