How the calculator works
A deductible is the part of a claim you pay yourself before your insurer pays the rest. Most insurers let you choose from a few options, and a higher deductible usually means a lower premium. This calculator puts two of those options side by side so you can see the trade-off in dollars.
Enter a lower deductible and the yearly premium quoted with it, then a higher deductible and its yearly premium. The calculator works out three numbers:
- Yearly saving: the premium with the lower deductible minus the premium with the higher one.
- Extra per claim: the higher deductible minus the lower one. That's how much more you'd pay out of pocket each time you claim.
- Break-even: the extra per claim divided by the yearly saving. It's the number of claim-free years it takes for the premium savings to cover one claim at the higher deductible.
If the higher deductible costs the same or more per year, there's nothing to gain, and the calculator tells you the higher deductible doesn't save you anything.
A worked example
With example numbers (not real quotes), say a policy costs $420 a year with a $500 deductible and $370 a year with a $1,000 deductible.
- Yearly saving: $420 − $370 = $50.
- Extra per claim: $1,000 − $500 = $500.
- Break-even: $500 ÷ $50 = 10 claim-free years.
Here you'd need to go ten years without a claim before the savings cover the extra $500 on a single claim. If you had to claim sooner, the lower deductible would cost you less. With a bigger gap, say $150 a year, the same $500 difference breaks even in just over three years.
How to use the result
The break-even is a way to think about the choice, not a prediction. Nobody knows when they'll need to claim, and premiums can change from year to year. A few questions help:
- Could you pay the higher deductible tomorrow without stress? If not, the lower one is probably the safer pick, whatever the break-even says.
- How often have you claimed in the past? If you rarely claim, a short break-even makes the higher deductible more appealing.
- Does the deductible apply the same way to every claim? Some policies set a different deductible for certain types of loss, such as water damage. Check the wording.
- Are the quotes otherwise identical? Use the same coverage on both so the deductible is the only difference, and enter both premiums the same way, before or after taxes.
Results are general information, not insurance advice. Expert Quebec isn't an insurer or a broker, and premiums and policy terms vary. Our tenant insurance guide explains what else to compare when you shop for coverage.
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