Auto Insurance Actuarial Calculator
Determine whether you should drop full coverage under the proven 10% Rule, and compute your exact monthly break-even horizon when raising deductibles.
Vehicle & Policy Inputs
Calculate whether comprehensive & collision coverage remains mathematically viable for your car.
Full physical damage coverage (collision + comprehensive) accounts for approximately 40% of the total premium bill. If that 40% exceeds 10% of the vehicle’s cash value, your expected claims recovery rarely justifies the ongoing premium outlay.
The 10% Rule Breakdown
RECOMMENDATION: DROP FULL COVERAGE — Switch to Liability Only to save an estimated $720/year.
Because 40% of your annual premium ($720) exceeds 10% of your vehicle's value ($650), insurance underwriters will deduct depreciation and your collision deductible before issuing any payout. Dropping to liability-only will bank significant annual savings.
Compare Liability-Only vs Full Coverage Rates
Get verified quotes with your state’s exact legal minimums.
Deductible Optimization
Calculate your exact break-even timeline in months when shifting from a $500 baseline deductible.
Every month you drive safely without submitting an at-fault collision claim pays back the difference in deductible responsibility.
Deductible Shift Analysis
Smart Move If You Have Liquid Emergency Cash
Switching your deductible to $1,000 saves $216 every year. If you have at least $1,000 stored in a savings account, you will recover your initial risk in 28 months and pocket every dollar saved thereafter.
Lock in Your Higher Deductible Discounts
Top carriers award up to 25% lower premiums for $1,000+ deductibles.
Actuarial Calculator FAQ
What is the actuarial "10% Rule" for dropping comprehensive and collision coverage?
The 10% Rule is a widely accepted financial principle: Collision and comprehensive coverage represents roughly 40% of your total auto insurance premium. If the cost of that 40% exceeds 10% of your vehicle's actual market value, you are mathematically overpaying for physical damage insurance. In the event of a total loss, the insurer only pays the cash value minus your deductible.
How is the deductible switch break-even period calculated?
The break-even period measures how many months of claim-free driving are required before your premium savings exceed the higher out-of-pocket deductible risk. The formula is: (Target Deductible - $500) / (Annual Savings / 12). If switching to a $1,000 deductible saves $25/month, you break even in exactly 20 months.
When should an owner switch from full coverage to liability only?
You should consider dropping full coverage if your vehicle is older (typically 8–10+ years old), has a market value under $4,000–$5,000, and is fully paid off with no outstanding auto loan or lease covenants.