Insurance deductible calculator
Compare two deductibles: see the yearly premium saving, the break-even point in years, and which option costs less based on how often you expect to claim.
Should I drop full coverage? Calculator for older cars
Collision and comprehensive pay up to your car's value, minus the deductible. As your car ages, that payout shrinks. Enter your numbers to see whether the coverage still earns its price.
Result
Showing the worked example. Change any number to see your own result.
$3,500Most you could collect
Dropping collision and comprehensive looks reasonable. The most you could collect is $3,500, you pay $540 a year for it (12% of the car's value), and you could replace the car from savings. Keep your liability limits as they are.
- Most you could collect
- $3,500
- Premium
- $540
- Yearly cost as a share of the car's value
- 12%
- Year premiums exceed the payout
- 4 years
- Most you could collect
- Premiums paid so far
View chart data as a table
| Year | Most you could collect | Premiums paid so far |
|---|---|---|
| 1 | $3,500 | $540 |
| 2 | $2,825 | $1,080 |
| 3 | $2,251 | $1,620 |
| 4 | $1,764 | $2,160 |
| 5 | $1,349 | $2,700 |
| 6 | $997 | $3,240 |
| 7 | $697 | $3,780 |
| 8 | $443 | $4,320 |
Value and premiums year by year
| Year | Car value | Most you could collect | Premium | Premiums paid so far |
|---|---|---|---|---|
| 1 | $4,500 | $3,500 | $540 | $540 |
| 2 | $3,825 | $2,825 | $540 | $1,080 |
| 3 | $3,251 | $2,251 | $540 | $1,620 |
| 4 | $2,764 | $1,764 | $540 | $2,160 |
| 5 | $2,349 | $1,349 | $540 | $2,700 |
| 6 | $1,997 | $997 | $540 | $3,240 |
| 7 | $1,697 | $697 | $540 | $3,780 |
| 8 | $1,443 | $443 | $540 | $4,320 |
| Total | $4,320 |
How the result is built
| Car value | $4,500 |
|---|---|
| Minus deductible | −$1,000 |
| Most you could collect | $3,500 |
| Yearly cost of collision and comprehensive | $540 |
| Yearly cost as a share of the car's value | 12% |
| Years of premiums that equal the maximum payout | 6.5 years |
Compare scenarios
Save up to 3 versions of your inputs and compare them side by side.
How to use this calculator
- Look up your car's value. Check recent local sale prices for the same make, model, year, mileage and condition.
- Enter your deductible and premiums. Use the yearly cost of collision and comprehensive from your insurer.
- Add your savings and loan status. These decide whether you could replace the car yourself and whether you are allowed to drop coverage.
- Read the verdict. The tool compares the maximum payout with the cost and explains what it means.
Why full coverage loses value as your car ages
Collision and comprehensive pay to repair or replace your own car, but never more than its value. The Texas Department of Insurance explains that insurers pay only up to the car’s actual cash value, its replacement cost minus depreciation, and the NAIC notes that a car is totaled when repairs would cost more than it is worth. Every year your car loses value, so the most you could ever collect goes down, while the premium often does not fall as fast.
This calculator compares the maximum payout with what you pay and gives a plain-language verdict.
How the calculation works
Maximum payout = car value − deductible
Yearly cost = collision premium + comprehensive premium
Cost share = yearly cost ÷ car value
Years to equal payout = maximum payout ÷ yearly cost
The verdict follows simple rules: keep the coverage if the car is financed; consider dropping it if the yearly cost is 10% or more of the car’s value or you could replace the car from savings; drop it if both are true.
Worked example
The calculator opens with this example: a car worth $4,500, a $1,000 deductible, collision at $420 a year, comprehensive at $120 a year, and $6,000 in savings.
| Line | Calculation | Result |
|---|---|---|
| Maximum payout | $4,500 − $1,000 | $3,500 |
| Yearly cost | $420 + $120 | $540 |
| Cost share | $540 ÷ $4,500 | 12% |
| Years to equal payout | $3,500 ÷ $540 | 6.5 years |
The yearly cost is more than 10% of the car’s value and the owner could replace it from savings, so the verdict is that dropping collision and comprehensive looks reasonable. If the same owner had only $1,500 in savings, the verdict would change to “consider”, because a total loss would be hard to absorb.
Keeping comprehensive, dropping collision
Comprehensive is often much cheaper than collision and covers theft, hail, flood, falling objects and animal strikes. Many owners of older cars drop collision first and keep comprehensive. Run the calculator with only the collision premium to test that option.
| Option | You pay | You are covered for |
|---|---|---|
| Keep both | Highest premium | Crashes, theft, weather, animals, glass |
| Drop collision only | Lower | Theft, weather, animals, glass |
| Drop both | Lowest | Nothing for your own car; liability still applies |
What changes the answer
- Your savings. The key question is whether you could replace the car if it were totaled.
- How much you rely on the car. If you need it for work and cannot replace it quickly, keep cover longer.
- Local risk. High theft or hail areas make comprehensive more valuable.
- Loans and leases. Lenders require collision and comprehensive until the loan is paid.
Common mistakes
| Mistake | Better approach |
|---|---|
| Overestimating the car’s value | Check real local sale prices |
| Lowering liability to save money | Liability matters as much on an old car |
| Dropping both coverages without checking comprehensive’s price | It may be cheap enough to keep |
Next steps
If you keep collision, the insurance deductible calculator shows whether a higher deductible saves money. Check your liability limits with the auto liability checker and read when to drop collision coverage for more detail.
Questions people ask
When should I drop full coverage on my car?
Consider it when the car's value minus your deductible is small compared with the yearly cost of collision and comprehensive, and when you could replace the car from savings. You usually cannot drop it while the car is financed or leased.
What is the 10% rule for dropping full coverage?
A rule of thumb says to consider dropping collision and comprehensive when they cost about 10% or more of the car's value each year. It is a prompt to do the math, not a strict rule.
What does full coverage mean?
It is an informal term for liability plus collision and comprehensive. It does not mean everything is covered or that your liability limits are high enough.
Should I drop comprehensive too?
Not necessarily. Comprehensive is often cheaper and covers theft, hail, flood and animal strikes. Run the numbers separately.
How do insurers value my car after a total loss?
They pay its actual cash value: the cost to replace it with a similar car of the same age and condition, minus depreciation.
Will dropping collision change my liability coverage?
No. Liability protects other people and your savings; keep it at a level that fits what you own.
Can I add collision back later?
Usually yes, though the insurer may want to inspect the car before adding physical damage coverage.
Sources
- Auto Insurance — National Association of Insurance Commissioners (NAIC), accessed
- Auto insurance guide — Texas Department of Insurance, accessed
Educational information, not insurance, legal or financial advice. Coverlee does not sell insurance. How we calculate
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