Decide whether making a claim is worth it versus paying out of pocket.
Calculated locally in your browser.
How do you decide whether making an insurance claim is worth it?
Cost of claiming = deductible + (premium increase × years); paying out of pocket costs the loss amount. Claiming is worth it when its cost is less than the loss. For a 3,000 repair with a 500 deductible and a 300 increase over 3 years, claiming costs 1,400 versus 3,000 out of pocket, saving 1,600.
Understanding your result
For losses near or below your deductible, claiming rarely helps. Larger losses usually favour claiming.
Formula and method
Cost of claiming = deductible + (premium increase × years). Paying out of pocket costs the loss amount. Claiming is worth it when its cost is less than the loss.
Assumptions and limitations
This is an estimate comparing two costs, not financial or professional advice. The premium increase and its duration are assumptions you enter and may differ from what your insurer actually applies. Claiming can also affect renewal and future cover in ways the tool cannot capture, so weigh those factors too.
Worked example
A 3,000 repair with a 500 deductible and a 300 increase for 3 years: claiming costs 1,400 vs 3,000 out of pocket — claiming saves 1,600.
How to use this tool
- Enter the repair or loss amount and your deductible.
- Enter the expected annual premium increase and how many years it lasts.
- Press Calculate.
Common mistakes to avoid
- Forgetting that a claim can raise premiums for several years.
About the Insurance Claim Calculator
A small claim can cost more over time than paying out of pocket once your premium rises. This tool compares the two so you can decide.
Who should use this tool
Policyholders facing a loss who are unsure whether to file a claim or pay for it themselves. Useful for smaller car, home or contents losses where a rising premium over several years might cost more than the repair, and you want the comparison before you call your insurer.
Benefits
- Compares claiming against paying out of pocket clearly
- Factors several years of premium increase into the cost
- Highlights when a small claim is rarely worthwhile
- Calculates privately in your browser with no sign-up
Practical use cases
- Deciding whether a minor repair is worth claiming
- Estimating the long-term cost of a premium rise
- Comparing options before contacting your insurer
- Weighing a loss near your deductible amount
Frequently asked questions
Will one claim really raise my premium?
It often does, by an amount and for a period that vary by insurer. Use figures from your renewal or insurer to be accurate.
How do I estimate my premium increase before claiming?
Insurers rarely publish exact figures, so you may need to ask yours or use your renewal history as a guide. Enter your best estimate of the yearly rise and how many years it might last. Testing a range of values shows how sensitive the decision is to that assumption.
Why does claiming rarely help for losses near my deductible?
You pay the deductible yourself before the insurer contributes, so a loss close to that amount returns little. Add any premium increase over the following years, and the total cost of claiming can exceed simply paying the loss. The tool makes this trade-off visible for smaller losses.