Insurance
Annual premium saving
The premium you give up each year by choosing the higher deductible.
The Formula
Saving = low-deductible premium - high-deductible premium
The premium you give up each year by choosing the higher deductible.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| Plow | Low-deductible premium | currency | Annual premium with the smaller deductible. |
| Phigh | High-deductible premium | currency | Annual premium with the larger deductible. |
What Each Symbol Means
Plowcurrency
Low-deductible premium
Annual premium with the smaller deductible.
Phighcurrency
High-deductible premium
Annual premium with the larger deductible.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate car insurance deductible page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate Car Insurance Deductible, filed under Finance. Every number the guide produces comes from substituting into this one line.