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Use this calculator to estimate how changes in your car insurance deductible impact your annual premium and potential out-of-pocket costs after an accident. Enter your current premium, deductible, and accident repair cost to calculate your savings and out-of-pocket expense.
Car Insurance Deductible Calculator
Car Insurance Deductible Formula:
Annual Savings = Premium × Reduction%
Out-of-Pocket = Min(Repair Cost, New Deductible)
Formula Source: Investopedia
- Premium: Your annual car insurance premium.
- Reduction%: Percentage reduction in premium from increasing your deductible.
- Repair Cost: Estimated repair cost after an accident.
- New Deductible: The new deductible amount after adjusting your policy.
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What is Car Insurance Deductible?
The car insurance deductible is the amount you pay out-of-pocket before your insurance coverage kicks in for a claim. By raising your deductible, you can lower your insurance premiums but take on more risk if you need to file a claim.
How to Calculate Car Insurance Deductible (Example):
- Step 1: Determine your current premium, deductible, and the repair cost of an accident.
- Step 2: Enter these values into the calculator.
- Step 3: Calculate the new savings and out-of-pocket costs based on your updated deductible.
Frequently Asked Questions (FAQ):
What deductible saves the most? Higher deductibles like $1,000 or $1,500 typically offer the biggest savings.
Does deductible affect coverage? No, it only affects your out-of-pocket expenses before the insurance payout kicks in.
Can I change my deductible? Yes, you can adjust your deductible during your policy renewal or upon request.