Car Insurance Deductible Calculator — $500 vs $1,000
Raising your deductible from $500 to $1,000 typically cuts comprehensive/collision premiums 10–20%. Whether that trade wins depends on how often you actually file claims — this calculator finds your break-even point.
Get both quotes from your insurer — takes one phone call.
- Extra out-of-pocket per claim
- $500.00
- 10-year savings if claim-free
- $1,200.00
How this calculator works
- Break-even = extra deductible risk ÷ annual savings. If you'd file a comp/collision claim less often than that interval (the average driver files one every 8–10 years), the higher deductible wins.
- Prerequisite: your emergency fund must absorb the higher deductible without pain — the strategy is self-insuring small claims, which requires the 'self' part.
Frequently asked questions
Should I file small claims at all?
Usually no — a claim near your deductible saves little today and can raise premiums 20–40% for 3–5 years. Many people with $500 deductibles effectively behave as if they had $1,500 ones; pricing it that way just captures the savings.
Does this apply to health insurance too?
The same logic drives high-deductible health plans: lower premiums + HSA tax advantages for people who rarely hit the deductible. The math differs because HSAs add a triple tax benefit.
When is a low deductible right?
Tight cash flow, teen drivers on the policy, long commutes in dense traffic, or hail-prone regions — anywhere claim probability or the pain of a surprise $1,000 is high.
Related calculators
Disclaimer: Results are estimates for educational purposes only and are not tax, legal, or financial advice. Tax rules are simplified (credits, phase-outs, and local taxes may not be modeled). Verify important decisions with the IRS, your state tax authority, or a licensed professional.