Policy Compass

Deductible Calculator: $500 vs. $1,000, Which Saves You Money?

A higher deductible lowers your premium, but you pay more out of pocket each time you file a claim. This calculator uses only the quotes you enter. It doesn't guess at rates. It shows how much you save each year and how long you'd need to go without a claim for the higher deductible to pay off.

If you've filed one collision or comprehensive claim in the last 10 years, enter 10. Never filed one? Try 10 or more.

Use quotes for the same car and coverage from the same insurer. If your bill is every 6 months, double it.

How the math works

  • Annual savings = premium at the lower deductible minus premium at the higher deductible.
  • Extra cost per claim = the difference between the two deductibles ($500 when you compare $500 and $1,000).
  • Break-even years = extra cost per claim ÷ annual savings. If you save $150 a year, it takes about 3.3 claim-free years to cover the extra $500.
  • Expected yearly net = annual savings minus (extra cost per claim ÷ years between claims). If it's positive, the higher deductible should come out ahead over time.

The Texas Department of Insurance says switching from $500 to $1,000 can save as much as 20 percent on premiums, but your quote is what counts. Get the real price at each level from your insurer. For more, read our full guide: $500 vs. $1,000 deductible.

Don't skip the emergency-fund check

A deductible applies to each claim, not once a year. Only pick the higher one if you could pay it tomorrow without borrowing, using a credit card you can't pay off, or missing a bill. Saving $150 a year doesn't help if a $1,000 repair bill becomes debt.

Frequently asked questions

What is a good break-even point for a higher deductible?

Compare it with how often you actually file. If the break-even is 3 years and you usually go 5 or more years between claims, the higher deductible tends to pay off. If the break-even is longer than the gap between your claims, keep the lower deductible.

Does this work for homeowners insurance too?

Yes. The math is the same for any deductible. Enter your home quotes at each deductible level. Keep in mind that some home policies have separate percentage deductibles for wind or hail.

Do I pay my deductible if the other driver was at fault?

Not if the other driver's insurer pays the claim. The Texas Department of Insurance says the deductible applies when you claim through your own policy.

Is my information saved or sent anywhere?

No. The calculator runs entirely in your browser. Nothing you type is stored or sent to us or anyone else.

Sources

  1. What to know about deductibles, Texas Department of Insurance
  2. Auto insurance consumer guide, Texas Department of Insurance
  3. Nine ways to lower your auto insurance costs, Insurance Information Institute

This calculator is for general education only, not personal financial or insurance advice. Results depend entirely on the numbers you enter.

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