Car Insurance Deductible Calculator

Choosing between a $500 and a $1,000 deductible comes down to one sum: how much the higher deductible saves you each year, set against how much more you would pay if you file a claim. Enter the deductible and price from two of your own quotes, and the calculator shows how many claim-free years it takes for the higher deductible to pay off.

Quick answer

The formula: Extra deductible ÷ yearly savings = break-even years.
What you need: Two quotes for the same car, drivers and coverage that differ only in the deductible.
Reading the result: If you expect a claim before the break-even point, the lower deductible usually costs less overall.
Your data: Nothing you enter is stored or sent; the math runs in your browser.

By the InsuranceNew.org Editorial Team. Last reviewed: October 8, 2026. How we research carriers

Deductible break-even calculator

Get two quotes that match on everything except the deductible, for example one at $500 and one at $1,000 on collision. Type in each deductible and the price shown on that quote. If your quotes show a six-month or monthly price, pick that option so both prices are turned into a yearly figure.

Enter two quotes for the same car, drivers and coverage that differ only in the deductible. Use the numbers printed on your own quotes. Nothing you type is stored or sent anywhere; the math runs in your browser.

Option A: lower deductible Deductible ($) Price of this quote ($)

Option B: higher deductible Deductible ($) Price of this quote ($)

Both prices are for

Years to compare Optional

Claims you expect in those years Optional, 0 if none

How the math works

The calculator does three steps with your numbers:

Yearly savings = price of Option A − price of Option B, both for 12 months.
Extra risk per claim = deductible B − deductible A. This is the most extra you pay on one covered claim.
Break-even years = extra risk ÷ yearly savings. After that many years without a claim, the higher deductible has saved more than it can cost you on one claim.

Example (placeholder numbers, not real or average prices): Option A has a $500 deductible and costs $1,400 a year. Option B has a $1,000 deductible and costs $1,250 a year. Option B saves $150 a year and adds up to $500 per claim, so it breaks even after $500 ÷ $150 = 3.33 years, about 3 years and 4 months. If you file a claim in year 2, Option A would have cost less; with no claim for 5 years, Option B saves $750.

The optional fields add a total for a set number of years: each option's yearly price times the years, plus its deductible times the claims you expect. Deductibles apply each time you file a claim, not once a year, as both Triple-I and Progressive explain, so two claims mean paying the deductible twice.

When a higher deductible may make sense, and when it may not

A higher deductible may make sense if

The break-even point is short, because the yearly savings are large compared with the extra deductible
You could pay the higher deductible from savings the week after a crash
You rarely file claims and your car is not often exposed to theft, hail or glass damage

A lower deductible may be the better buy if

The savings are small, so break-even takes many years
Paying the higher deductible would mean putting a repair on a credit card or skipping it
Your car is financed or leased and the contract caps the deductible (see below)

Triple-I notes that raising a deductible can lower the cost of collision and comprehensive coverage, and reminds you that you are responsible for the deductible when you have a loss, so pick an amount you are comfortable paying. Progressive says the best amount is one you are comfortable paying on a claim, and that a higher deductible means a lower rate but more out of pocket.

Collision and comprehensive deductibles

Collision and comprehensive often carry separate deductibles, and a quote can show different amounts for each. Run the calculator once for each line you are changing: if only the collision deductible moves between two quotes, the price gap belongs to that line. Liability coverage generally has no deductible, because it pays other people. Which losses fall on which line is covered in collision vs comprehensive, and how to line up deductibles across quotes is in what a car insurance deductible means.

Some deductibles work differently. Progressive notes that, depending on your state and insurer, glass claims may have no deductible or a $0 deductible option, and that some insurers offer a disappearing deductible that shrinks with time claim-free. The Hartford offers a Disappearing Deductible on its AARP program (not available in California). If your quote has one of these, the simple break-even math above overstates the risk of the higher deductible; ask the carrier how it works before you rely on it.

Financed or leased car: check the deductible cap first

If you owe money on the car, your loan or lease contract usually requires collision and comprehensive and may limit how high the deductible can be. The Federal Reserve's vehicle leasing guide says leases typically require collision and comprehensive with a maximum deductible of $500 or $1,000, and that the exact maximum is written in the lease agreement. Loan contracts vary by lender, so read yours before choosing a higher deductible.

Going over the cap can put you out of line with the contract. The Consumer Financial Protection Bureau explains that when required coverage is missing, the lender can buy force-placed insurance that protects only the lender and is usually much more expensive than a policy you buy yourself. How lenders and carriers define full coverage is in full coverage by insurance company and liability vs full coverage.

Frequently asked questions

Is a $1,000 deductible better than a $500 deductible?

It depends on the price gap in your own quotes and on whether you could pay $1,000 after a claim. Divide the extra $500 by the yearly savings: if the higher deductible saves $100 a year, it takes 5 claim-free years to break even; if it saves $250, it takes 2. Use the calculator above with the prices from your quotes.

Do I pay the car insurance deductible once a year or on every claim?

On every claim. Car insurance deductibles are not annual: each covered collision or comprehensive claim has its own deductible, so two claims in a year mean paying it twice. Liability coverage generally has no deductible.

Can my lender limit how high my deductible is?

Often, yes. Loan and lease contracts usually require collision and comprehensive and may set a maximum deductible; the Federal Reserve's leasing guide says leases typically cap it at $500 or $1,000. Check your own contract before raising the deductible.

Compare car insurance quotes by ZIP Code

Once you know which deductible fits, enter your ZIP Code and use that same deductible on every quote, so the price difference you see is real. The form continues to a partner site to show quotes.

Car insurance quotes

Sources

Checked on October 8, 2026 on each organization's official website. Carrier pages change; the carrier's policy documents and its quote are what count.

Disclaimer: This calculator does arithmetic on the numbers you enter. It is not a quote, an offer of insurance or financial advice, and it does not know your insurer's rules, your state's requirements or your loan terms. Prices, deductibles and coverage come only from the insurer's quote and policy documents. InsuranceNew.org is not an insurer; the ZIP form continues to a partner site.

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