Compare two travel insurance deductible options by combining annual premium with the expected deductible cost of a claim. The calculator shows which option has the lower probability-weighted annual cost and the claim probability at which the choice switches. It is a planning estimate, not a prediction of losses or a recommendation to buy a particular policy.
A lower expected cost favors that option mathematically, but the larger deductible must still be affordable immediately after a covered loss.
Coverage terms, exclusions, limits, coinsurance, and multiple claims can matter more than this simplified one-claim comparison.
Using the default inputs, the calculator multiplies each deductible by an 18% claim probability, adds its premium, and compares the two expected annual costs.
No. It provides a planning estimate using your inputs; policy selection requires review of terms, exclusions, limits, price, and personal or business circumstances.
Use a clearly defined scenario. A severe but plausible covered loss is useful for stress testing, while a typical loss is better for expected-value analysis.
Use your own credible loss history or a documented risk assessment. Do not treat the calculator default as an industry benchmark.
No. Enter values that reflect expected covered amounts and separately review exclusions, waiting periods, sublimits, and aggregation wording.
Insurers use underwriting data and policy language not modeled here. Actual payments also depend on evidence, adjustment, deductibles, limits, and coverage decisions.
| Input concept | How to use it |
|---|---|
| Financial amounts | Use one currency and the same policy period. |
| Probability | Enter a percentage from 0% to 100% based on defensible evidence. |
| Retention or deductible | Use the amount paid by the insured before eligible coverage responds. |