Free educational tool
A clearer look at your deductible trade-off.
Compare two policy options using quoted annual premiums and a hypothetical covered loss. This is an illustration, not an insurance quote or recommendation.
One year. One covered loss.
Enable JavaScript to calculate the comparison.
| Cost component | Option A | Option B |
|---|---|---|
| Annual premium | ||
| Out of pocket for loss |
Premium saving and break-even context
A lower total in this scenario is not a policy recommendation. Coverage, exclusions, and future premiums are not modeled. Savings-year arithmetic does not predict claims, claim frequency, insurer payouts or how long you should keep a policy.
Understand the calculation.
The formula
Annual premium + min(deductible, covered loss)
For each option, add the annual premium to the smaller of the entered deductible or loss. If the loss is below the deductible, the illustration counts the full loss as your out-of-pocket amount.
The assumptions
We assume one covered loss, that the deductible applies, that all other coverage terms are equivalent, and that a claim does not change future premiums. Actual claims can involve limits, exclusions, and other costs.
Zero is a valid input; a blank field is not. This tool accepts cents and amounts up to $1 billion as a calculation limit, not a suggested premium or deductible.
Use equivalent coverage and the same premium period. Ask a licensed provider about your actual policy terms. This tool does not determine coverage or recommend a deductible.