Deductible Breakeven Calculator

How many years of premium savings does it take to make a higher deductible worth it? Results update live.

Your quotes

Current deductible

Proposed higher deductible

Current annual premium

Premium with higher deductible

Ask your agent for the requoted premium at the new deductible level.

Breakeven point

8.3 years

Years of premium savings needed to cover the extra out-of-pocket you'd pay on a single claim. Shorter is better. If you go that long between claims, the deductible bump pays off.

The math

Premium savings per year$180

Extra out-of-pocket on a claim$1,500

5-year net (if 1 claim)$-600

10-year net (if 1 claim)$300

Re-quote at the new deductible

When raising your deductible makes sense

The breakeven number tells you the gross math. The actual decision depends on three things the calculator can't see:

Cash on hand. If you can comfortably absorb the higher deductible without putting it on a credit card, raise it. If not, the premium savings aren't worth the cash-flow risk.
Claim frequency. If you've filed two or more claims in the last 5 years, you're a higher-than-average claim frequency household. Breakeven math gets worse fast.
Wind/hail deductible structure. In AL/GA/TN, the wind/hail deductible is often percentage-based (1-5% of dwelling value), not flat-dollar. Raising the wind/hail deductible is usually a much bigger absolute number than the general deductible.

The common pattern we see

Most TCDS clients who raise deductibles from $1,000 to $2,500 break even in 3-5 years and have 7-10 years between claims on average. The math favors the raise for most households with emergency savings. The math does NOT favor the raise for households with no liquid savings or recent claims.

Coverage questions and answers

How do I choose the right insurance deductible?

Compare the premium you save by raising the deductible against the extra out-of-pocket you would pay at claim time. If a higher deductible saves you $200 a year and raises your out-of-pocket by $1,000, it pays for itself in five claim-free years. This calculator finds that breakeven so you can pick a deductible you can actually afford when a claim hits.

What is a deductible breakeven point?

The breakeven point is how many years of premium savings it takes to cover the extra you would pay if you had a claim at the higher deductible. If you go fewer years than that between claims, the higher deductible costs you; more years, and you come out ahead. It turns a guess into a number.

Will a higher deductible lower my premium?

Yes. Raising your deductible shifts more of the small-claim risk to you, so the carrier lowers your premium. Moving a home deductible from $1,000 to $2,500, or an auto collision deductible from $500 to $1,000, can meaningfully cut your rate, as long as you keep the difference set aside for when you need it.

When does raising my deductible make sense?

It makes sense when you have the higher amount saved, you rarely file small claims, and the premium savings reach breakeven within a few years. It makes less sense if a large out-of-pocket would be a hardship, or if you live in a hail- or storm-prone area where claims are more frequent. The calculator helps you decide on your own numbers.