Financial expert with over 15 years of experience in the insurance sector.
This Car Insurance Deductible Calculator helps you estimate your potential out-of-pocket costs and savings by adjusting your insurance deductible.
Car Insurance Deductible Calculator
Car Insurance Deductible Formula
Annual Savings = Premium × Reduction%
Out-of-Pocket = Min(Repair Cost, New Deductible)
Formula SourceFormula Variables:
- Premium: Your current annual insurance premium.
- Reduction: The percentage reduction in premium based on a new deductible.
- Repair Cost: The cost of repairs after an accident.
- New Deductible: The adjusted deductible you are considering.
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What is Car Insurance Deductible?
A car insurance deductible is the amount you pay out-of-pocket when you file a claim. The higher your deductible, the lower your premium, but the more you’ll pay in case of an accident.
How to Calculate Car Insurance Deductible (Example):
- Step 1: Enter your current annual premium (e.g., $1500).
- Step 2: Enter your current deductible (e.g., $500) and the new deductible (e.g., $1000).
- Step 3: Enter the repair cost (e.g., $2500).
- Step 4: Enter the estimated premium reduction (e.g., 10%).
- Step 5: Click “Calculate” to see your annual savings and out-of-pocket cost after an accident.
Frequently Asked Questions (FAQ)
A higher deductible, like $1000 or $1500, often provides the biggest savings, but it increases your out-of-pocket cost in case of an accident.
Does deductible affect coverage?No, it only affects how much you pay out-of-pocket before your insurance covers the rest.
How often can I change my deductible?You can typically change your deductible during your policy renewal or by contacting your insurance provider.