What does the break-even claims number mean?

It's the maximum number of claims you could file over your chosen time horizon before the higher deductible's extra out-of-pocket costs outweigh the premium savings you banked.

How often do drivers actually file claims?

On average, about once every 17-18 years, according to industry claim-frequency data — though this varies a great deal by driver, vehicle, location, and driving conditions.

Should I always pick whichever deductible the math favors?

Not necessarily — if a higher deductible would strain your emergency savings after a claim, the lower deductible can still be the right choice even when the long-run math favors the higher one.

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Car Insurance Deductible Calculator

Compare a low and high deductible — see the break-even years and claims where the higher one wins.

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Last reviewed 2026-08-31

About the Car Insurance Deductible Calculator

Compares a low and a high car-insurance deductible by weighing the annual premium savings from the higher deductible against the extra out-of-pocket cost you'd owe if you actually file a claim — showing the break-even point where the higher deductible pays off.

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How to use it

Enter your Lower deductible (A) and Higher deductible (B).
Enter the Annual premium savings you'd get by choosing B instead of A.
Enter a Time horizon in years.
Enter the Expected claims you'd realistically file over that horizon.
Read the break-even years, break-even claim count, and net dollar benefit.

Formula

Extra out-of-pocket per claim = deductible B − deductible A. Break-even years = extra per claim ÷ annual premium savings. Cumulative savings over horizon = annual premium savings × horizon years. Break-even claims over horizon = cumulative savings ÷ extra per claim. Net benefit of choosing B = cumulative savings − (expected claims × extra per claim).

Worked example

A driver comparing a $500 and a $1,000 deductible, saving $150/year with the higher one, over a 5-year horizon with 1 expected claim: extra out-of-pocket per claim is $500, break-even is 3.33 claim-free years or 1.5 claims over the 5-year horizon, cumulative savings if claim-free would be $750, and the net benefit of choosing the higher deductible is $250.

Interpreting your result

This compares two deductible options for the same coverage, not whether to carry collision/comprehensive coverage at all. The break-even math assumes the premium-difference figure you enter is accurate and stays roughly constant over the horizon — insurers do reprice at renewal. Regardless of what the math says, never choose a deductible higher than you could comfortably pay in cash if a claim happened tomorrow.

Recommendations

• If your realistic time between claims is longer than the break-even years shown, the higher deductible tends to win financially over time.
• The average driver files an auto claim only about once every 17-18 years, so for a claim-free driving history, a higher deductible often nets out ahead.
• Run the numbers again whenever your insurer reprices at renewal — the premium gap between deductible tiers isn't fixed.

Frequently asked questions

It's simply the dollar gap between your two deductible options — the additional amount you'd personally pay toward repairs if you file a claim under the higher deductible instead of the lower one.