Insurance Deductible Comparison Calculator

Higher deductibles save 5–25% on premium but require more cash at claim.

Lower deductible

Higher deductible

Annual premium savings

Expected claims in 10 yrs

10-year net savings

-$200

Break-even (claims / 10 yrs)

0.9

Deductible difference

$2,000

How the math works

Premium savings × 10 yrs vs deductible diff × claim frequency. Break-even = savings / diff.

$180 × 10 = $1,800 vs $2,000 × 1 claim = $200 worse. Break-even at 0.9 claims / 10 yrs.

How to Use

Enter lower deductible.
Enter higher deductible.
Enter annual premium savings.
Enter expected claims in 10 yrs.
Read 10-year net savings.

Frequently Asked Questions

Deductible decision framework?

Compare premium savings × years vs deductible difference × claim frequency. 5-year window typical. Standard $500 vs $1,000 deductible: ~10% premium savings, $500 difference per claim. Break-even at 1 claim per 10 years. $1,000 vs $2,500: ~15% savings, $1,500 difference. Best higher deductible: clean claim history, financially capable of higher cash, low-risk profile. Worst: tight cash flow, high-risk area, hail-prone roof. CAT zones: percentage deductibles (1–10% of TIV) typically only option.

How is this insurance cost determined?

Property and liability insurance pricing depends on construction class, occupancy class, sprinkler/alarm, location (CAT exposure: hurricane, earthquake, flood, wildfire), claims history, deductibles, and policy limits. Hard market 2022–2025: rates +20–60%, capacity tighter, deductibles higher. Soft market typical 2010–2019: stable to declining. Underwrite for cycle.

Coverage adequacy?

Property: replacement cost vs ACV, coinsurance penalty if under-insured (80–100% requirement). Business interruption: 12–24 months typical, period of restoration triggers. General liability: $1–2M/$2–4M, umbrella to $5–25M depending on occupancy. Pollution legal liability: critical for environmental-risk assets. Builders risk for construction. Match coverage to actual exposure.

Deductible strategy?

Higher deductibles save 5–25% on premium but require risk capital. Wind/hail named storm deductibles: 2–10% of TIV in CAT zones. All-other-perils: $5–25k typical. Self-insured retention (SIR) for sophisticated operators: $50k–500k. Captive insurance: $1M+ minimum, complex but effective for portfolios. Match deductible to financial strength and risk tolerance.