Compare insurance deductible options to maximize savings.
Calculate break-even points, annual savings, and determine the optimal deductible for your auto and home insurance.
Use realistic defaults for collision and comprehensive coverage. Fine-tune premiums, claim history, and risk to see true savings.
Deductible delta
$500
Looks favorableRecent physical damage claims
Toggle on to compare combined break-even analysis for auto and home policies.
We factor your savings and analysis horizon into the recommendations.
Years you plan to stay claim-free
Savings outlook
$938
If you stay claim-free
Monthly savings: $16
Totals are combined across every policy you included.
Annual savings
$188
Time horizon: 5 years
Auto strategy
Break-even in 2.7 years · Claim outlook 12.5% (8 yr cycle)
Raise your auto deductible to $1,000 and bank ~$188 per year.
Higher deductibles trade risk for certain savings. Aim for the point where savings eclipse the additional cash you would need to cover a claim.
Your deductible is the amount you pay out-of-pocket before your insurer covers the rest. Raising it shifts more risk to you, but immediately reduces every renewal premium.
Example
Increasing an auto deductible from $500 to $1,000 saves roughly $188 per year on a $1,500 premium. Break-even happens in about 2.7 years. If you go five claim-free years, that one change can free up nearly $1,000 for your emergency fund.
Source: AAA & Bankrate blended averages. Savings vary by state and insurer.
Live projection with claim and premium adjustments.
$188
$16 / month
2 yr · 8 mo
Deductible increase $500
Adequate (8,000 saved vs $1,000 needed)
Claim odds + fund coverage help gauge whether to move now.
Good (1 minor violation). Claim odds 12.5% (8 yr cycle).
$125/year
Average annual saving after expected claim costs
Glanceable cues for quick underwriting conversations.
An insurance deductible is the amount you pay out-of-pocket before your insurance coverage kicks in. Choosing a higher deductible lowers your premium (the amount you pay for insurance), but increases the amount you'll pay if you file a claim.
Example: With a $500 deductible and $3,000 in damage, you pay $500 and insurance pays $2,500. With a $1,000 deductible, you pay $1,000 and insurance pays $2,000.
The break-even period tells you how long you need to go without filing a claim before the higher deductible saves you money.
Break-Even Period = Deductible Increase ÷ Annual Premium Savings
Example:
If you go 2.78 years without a claim, the higher deductible will have saved you money. After that point, you continue saving $180 every year.
Applies to collision and comprehensive coverage only
Actual savings vary by insurer and location
Your personal claim history and risk factors affect whether a higher deductible makes sense:
Before choosing a high deductible, ensure you can comfortably pay it without financial hardship.
Minimum: Highest deductible amount
Conservative: Sum of all deductibles (to cover multiple simultaneous claims)
Example:
âš Only choose high deductibles if you can afford to pay them without dipping into retirement savings or going into debt.
Use different deductibles for different coverage types based on risk. For example: higher deductible on comprehensive (low frequency) and moderate on collision (higher frequency).
Set aside your premium savings each year in a dedicated "deductible fund" so you're prepared if you need to file a claim.
With a higher deductible, you're incentivized to pay for minor damage out-of-pocket, which helps keep your premiums low by avoiding claim surcharges.
Your situation changes over time. Review your deductible annually and adjust as your emergency fund, risk factors, and financial situation evolve.