Tune your deductible to lower collision premiums today. Model claim risk, repairs, and ownership horizon. Get savings, breakeven points, and downloads in minutes securely.
| Vehicle value | Premium | Deductible (current → new) | Repair cost | Claim risk | Estimated annual savings |
|---|---|---|---|---|---|
| ₨2,800,000 | ₨65,000 | ₨25,000 → ₨50,000 | ₨180,000 | Medium | ₨9,000–₨18,000 (varies by inputs) |
| $18,000 | $520 | $500 → $1,000 | $2,200 | Low | $45–$110 (varies by inputs) |
Raising the collision deductible often reduces the premium, but it shifts more expense to you during a claim. In the calculator, a move from 25,000 to 50,000 with a 65,000 annual premium and α=0.25 can lower the modeled premium by about 16% before discounts. The tool then compares the premium drop against the added deductible exposure.
Expected out-of-pocket is computed as p(claim) × min(deductible, repair cost). With a medium base risk near 10%, a typical repair of 180,000 and a 25,000 deductible yields about 2,500 expected out-of-pocket per year. If the probability increases to 18% under high risk, the same inputs raise expected out-of-pocket to 4,500, shrinking premium-driven savings. Mileage, driver age, vehicle age, and claims-free years adjust p(claim), which is clamped between 1% and 40% to avoid unrealistic extremes.
The premium model uses Premium_new = Premium_current × (Ded_current/Ded_new)^α × (1−Discount). A 5%–15% safety discount can materially change results: at 10% discount, a 55,000 modeled premium becomes 49,500. Adjust α to match your market; values near 0.20–0.35 produce moderate sensitivity to deductible changes. Discounts from safety features are capped at 15% in the tool to reflect typical underwriting limits.
Breakeven probability indicates when a strategy stops saving money. For deductible changes, it is PremiumSavings ÷ (min(D_new,Repair) − min(D_cur,Repair)). If breakeven is 22%, claims above 22% per year can erase expected savings. For dropping collision, breakeven is CurrentPremium ÷ (Repair − min(D_cur,Repair)). Use these thresholds to test “what-if” scenarios: if your realistic claim probability is far below breakeven, savings are more robust.
Multi-year decisions benefit from discounting. The calculator applies premium growth g and discount rate r to estimate net present value over 1–15 years. Example: with g=8% and r=10% across 4 years, near-term premiums weigh more than later premiums, so immediate premium savings matter most. Vehicle value caps repair exposure, aiding comparisons across older and newer cars. Use NPV savings to rank strategies consistently, more confidently.
It is the difference between your current expected annual cost and the new strategy’s expected annual cost, combining premium plus modeled out-of-pocket based on claim probability.
You choose a base level (low, medium, high, or custom). The calculator adjusts it using mileage, driver age, vehicle age, and claims‑free years, then limits the result to a 1%–40% range.
Premiums are modeled to fall as deductibles rise. The elasticity parameter α controls how strongly premiums respond to deductible changes, and safety discounts reduce the premium further.
If a lender requires it, the tool blocks this option. Even without a lender, dropping collision can be costly when repair costs are high relative to your budget or when your claim probability is elevated.
It is the claim probability where premium savings are exactly offset by extra expected out-of-pocket. If your realistic probability is below breakeven, the strategy is more likely to save money.
NPV savings discounts future expected costs over your chosen horizon, applying premium growth and a discount rate. It helps compare strategies consistently when savings occur across multiple years.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.