What the deductible comparison answers
Raising a deductible may reduce premium, but it increases the amount you may have to pay on a covered loss. This worksheet asks how many years of the quoted annual premium savings would equal that additional deductible exposure for the number of claims you choose to model.
It does not estimate claim probability, coverage eligibility, fault, repair cost, insurer payment, or whether a deductible applies to a particular loss.
Break-even equation
Added deductible exposure equals (higher deductible − current deductible) × modeled covered claims. Break-even years equal that exposure divided by quoted annual premium savings. The higher deductible must exceed the current deductible, savings must be positive, and claims must be a positive whole count.
Worked example
For a current $500 deductible, a proposed $1,000 deductible, $140 of annual premium savings, and one modeled covered claim, the added exposure is $500. It takes about 3.57 years of the entered savings to equal that amount.
How to interpret the result
A shorter break-even period does not prove that the higher deductible is preferable. Consider whether the higher cash amount is available on short notice and whether multiple coverages have separate deductibles. Recheck the quote if limits, endorsements, discounts, billing plans, or policy periods differ.
Modeling zero claims may be useful in a broader comparison, but it does not create a deductible-cost break-even question; this calculator intentionally requires at least one modeled covered claim.
Consumer guidance
The NAIC auto-insurance shopping tool emphasizes collecting comparable policy information. Your state insurance department is the authority for local rules and consumer assistance.
Use Auto Insurance Budget for a separate multi-year premium cash-flow scenario.