Deductible trade-off calculator
See how many years of premium savings it takes to equal a higher deductible.
- Extra deductible
- $50,000
- Premium saved each year
- $10,000
Talk it through with the policy in hand
Our policy review reads your deductibles and limits against your buildings, and a licensed insurance broker approves every report. Policy reviews are free for any owner.
Estimate from the numbers you enter. General information, not insurance, legal or financial advice, and not a recommendation on what deductible to carry.
What this compares
A higher deductible means paying more of a loss before insurance applies, and it can come with a lower premium. This calculator shows how many years of that premium saving add up to the extra deductible. It does the arithmetic and leaves the choice to you and your broker.
How the math works
- Extra deductible: the higher deductible minus the current one.
- Premium saved: the current annual premium minus the premium quoted at the higher deductible.
- Years to equal it: the extra deductible divided by the premium saved.
What the math leaves out
- Losses: the math does not know how often a building will have a loss, or how large one would be.
- Changing premiums: quotes can change at each renewal, and the math holds the saving flat.
- Percentage deductibles: enter the deductible in dollars. The deductible calculator turns a percentage into dollars for each building.
Questions
- Does this tell me which deductible to carry?
- No. It shows how many years of premium savings equal the extra deductible. That choice depends on your buildings, your lender and your policy, so it is one to make with your broker.
- Why doesn't it use storm history?
- A storm near a building is not the same as a claim, so storm counts can't be turned into a number of losses. The hail history and Hail vs your roof tools show that history on its own.
- Can I use this for a percentage deductible?
- Yes, once it is in dollars. The deductible calculator works out a percentage deductible for each building.
Terms used here
Sources
The tool does arithmetic only and sends nothing anywhere.