Deductible vs Premium Comparison

HDHPs (deductible $1,700+ single / $3,400+ family in 2026) cost 20-40% less in premiums and qualify you for an HSA. They're best for healthy people who can self-fund the deductible. KFF reports 32% of covered workers are now in HDHPs.

Breakeven claims = Premium savings × 12. If a $1,000 higher deductible saves $50/month ($600/year), breakeven is at $600 of additional claims per year. Below that, the higher deductible wins.

No. Low-deductible plans cost significantly more upfront. Most healthy adults overspend on premiums. Run the math: if you rarely hit your deductible, a higher-deductible plan saves money long-term.

Find the level with the lowest expected total cost, then confirm it passes the liquidity test: you can pay it in cash without going into debt. If the winning option is more than your emergency cushion can absorb, step down one level.

It's a market average across auto, home, and commercial insurance. Real quotes range from 5% to 30% per step depending on the carrier, ZIP code, and your profile. Pull real quotes to refine the estimate.

No. It's better on expected value when the insurer cuts premium by more than it raises your exposure. But the worst case gets worse linearly: one year with two claims at a $5,000 deductible can wipe out several years of savings.

When you live without an emergency cushion, expect frequent claims, or your insurer barely lowers the premium when you raise the deductible. Also when the gap between levels is small in absolute dollars.