Deductible vs premium break-even

Annualize it. One claim every three years is about a third of a claim a year, so if the break-even needs more than 0.33 claims a year the high deductible is the better bet.

Affordability is the constraint that matters. A deductible you could not pay tomorrow without borrowing turns a covered loss into a debt problem, whatever the premium math says.

Usually yes, and often for several years. That effect can easily exceed the deductible difference, which is a strong argument for a high deductible and not claiming for small losses.

Compare the premium saving with the extra risk. If you can pay the higher deductible from savings without strain and you claim rarely, the high-deductible option usually wins on expected cost.

$500 and $1,000 are the most common choices. Moving from $500 to $1,000 typically cuts the premium by 10 to 20%, which is worth it only if you can actually pay $1,000 if you crash.

Usually yes. The gap between deductible levels is often several hundred dollars a year, and this calculator shows how many claims the lower deductible would need to justify itself.

No. They are educational estimates based on the inputs and assumptions on this page. Confirm important decisions with a qualified professional and your own documents.