Free Insurance Deductible Optimizer
Find the optimal insurance deductible by comparing premium savings against increased out-of-pocket risk.
Annual Premium Savings
$400
Annual Premium Savings vs Lower Deductible
Choosing the Right Deductible
The Trade-Off
A higher deductible means lower premiums but more out-of-pocket cost when you file a claim.
Break-Even Analysis
Break-Even Years = Extra Risk / Annual Premium Savings
If you save $400/year by choosing a $1,500 higher deductible, you break even in 3.75 claim-free years.
Expected Cost
Expected Cost = Annual Premium + (Deductible x Claim Probability)
This factors in the statistical likelihood of actually filing a claim.
Example Calculation
$500 vs $2,000 deductible, $1,800 vs $1,400 annual premium, 10% claim probability.
- 01Premium savings = $1,800 - $1,400 = $400/year
- 02Extra risk = $2,000 - $500 = $1,500
- 03Break-even = $1,500 / $400 = 3.75 years without claims
- 04Expected cost (low) = $1,800 + $500 x 10% = $1,850
- 05Expected cost (high) = $1,400 + $2,000 x 10% = $1,600
Frequently Asked Questions
Learn More
How to Calculate Mortgage Payments
Learn how to calculate mortgage payments step by step. Understand the mortgage payment formula, principal vs. interest breakdown, escrow, PMI, and how to use amortization schedules.