High vs Low Deductible Trade-off Calculator
The math behind choosing a high or low deductible on any insurance policy. Calculate exactly when a lower deductible is worth the extra premium cost.
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Frequently asked questions
When is a lower deductible worth paying extra for?
The math is simple: if the premium difference over 3 years is less than the deductible difference times the number of claims you expect to file, go with the lower deductible. For example: $300/year premium delta × 3 years = $900. If deductible difference is $500 and you expect 2+ claims in 3 years (2 × $500 = $1,000), then lower deductible saves you money.
Should I worry about a high deductible I can't afford?
This is the real psychological factor. If you couldn't write a $2,500 check tomorrow after a car accident, a $2,500 deductible is dangerous — even if the math says it saves you money. The trade-off isn't just financial: it's risk tolerance. The premium savings is worth less if a single event causes financial stress.
How often do people actually file claims?
According to industry data, the average driver files a claim every 7-10 years, and the average homeowner files every 18-20 years. If you're a safe driver with a clean record, you'll likely go years without a claim — making a higher deductible mathematically optimal. But all it takes is one at-fault accident to flip the calculation.