Finance category
Mortgage, loan, investing, tax, and money calculators.
Claim Deductible Break-Even Calculator
Higher insurance deductibles trade lower premiums for higher per-claim out-of-pocket. The break-even claim count tells you how many claims you can absorb before the higher-deductible policy is worse than the lower-deductible alternative. This calculator computes both the break-even and the multi-year premium savings.
Premium savings (10 yr)
$6,000
Break-even # of claims
6.7
How many claims before high-deductible is worse
Annual premium savings
$600
Extra deductible per claim
$4,000
How the math works
Higher deductible = lower premium. Break-even = extra deductible per claim ÷ annual premium savings. If you average fewer claims per period than break-even, the higher-deductible policy wins.
Most properties get 1 claim per 10-30 years. High deductible is usually the right choice for property and auto insurance unless cash flow can't absorb the deductible.
How to Use
- Enter low deductible option and corresponding premium.
- Enter high deductible option and corresponding premium.
- Enter analysis horizon.
- Read break-even claim count and total premium savings.
Frequently Asked Questions
Typical property claim frequency?
Homeowner: 1 claim per 10-15 years. Commercial: 1 per 5-10 years (higher exposure). Most owners benefit from raising deductible to $5K+ if they can absorb it.
Liability vs property deductible?
Property deductibles common $500-10K. Liability typically zero deductible (insurer defends from dollar one). Discussion mainly applies to property/comprehensive.
What about claim history impact?
Frequent small claims can spike premium 30-100% on renewal or trigger non-renewal. Self-paying small losses (under deductible) protects loss ratio.
Related Calculators
More Finance Calculators
Browse all finance →AI Cost Calculator
Compare token costs across OpenAI, Anthropic, and Google AI models. Calculate monthly API spending for GPT-4o, Claude, Gemini, and more.
Tip Calculator
Calculate the perfect tip and split the bill between friends. Choose preset percentages or enter a custom tip amount.
Bill Splitter Calculator
Split an uneven restaurant bill by item, divide tax and tip proportionally, and see exactly who owes whom.
Discount Calculator
Calculate sale price, discount amount, stacked discounts, sales tax, and total savings for any markdown.
Gas Mileage Calculator
Calculate MPG or km/L, estimate trip fuel cost, and compare annual fuel expenses between two vehicles.
Sales Tax Calculator
Add sales tax to a price, reverse-calculate the pre-tax amount from a total, and estimate tax for multiple items on one receipt.
Keep exploring