How to use the small claim vs surcharge calculator
- Enter the repair or loss amount and your deductible.
- Enter your yearly premium, the surcharge you expect as a percent, and the number of years it applies.
- Read the payout after the deductible, the total surcharge and the net result of filing.
- Use the break-even repair amount and the table to see how the answer changes for a smaller or larger claim.
Formula
payout = repair amount - deductible, or zero if the repair is smaller
surcharge = yearly premium x surcharge percent x years
net result of filing = payout - surcharge
break-even repair amount = deductible + surcharge
A negative net result means the surcharge you expect costs more than the claim pays. It is shown in brackets.
An $1,800 repair with a $1,000 deductible
The insurer pays 1,800 - 1,000 = $800. If the yearly premium is $1,400 and rises by 20% for 3 years, the surcharge is 1,400 x 0.20 x 3 = $840. Filing leaves you $40 behind, so the result is shown as ($40.00).
The break-even repair amount is the deductible plus the surcharge, 1,000 + 840 = $1,840. At a $6,000 repair the payout is $5,000 and the net result is $4,160. At $700, below the deductible, there is no payout and the result is ($840.00).
What the comparison leaves out
The tool compares money only. Filing a claim can also affect whether your policy is renewed, which discounts you keep and how other insurers see you, and none of that is in the numbers. In the other direction, an expensive repair you can not afford yourself may make the claim worth filing even if the surcharge is high.
If you are still choosing a policy, the Deductible Comparison Calculator weighs a higher deductible against a lower premium. To see the premium per month, use the Car Insurance Cost per Month Calculator.
Finding a realistic surcharge
Ask your insurer or agent how a claim of that size would change your premium, and for how many years. Do not rely on a general figure, because it varies by insurer and place. Try several percents in the tool to see how sensitive the answer is.
Assumptions and limits
- The surcharge is a percent of the yearly premium that you enter and stays level for the years you give.
- The premium itself does not change for other reasons during those years.
- The payout is the repair amount minus the deductible, with no policy limits or exclusions.
- Future inflation and the time value of money are ignored.
- This is arithmetic for a decision, not insurance advice.
Frequently asked questions
Should I always pay small repairs myself?
Not always. If the surcharge is small or the claim is large, filing can come out ahead. The break-even repair amount shows where the answer flips for your numbers.
Where do I find the surcharge?
Ask your insurer or agent. It differs by insurer, place and the kind of claim.
Why does the table show five repair amounts?
It scales your repair amount from half to double so you can see how close you are to the break-even point.
Does the tool include losing a claims-free discount?
Only if you include it in the surcharge percent. Add the lost discount to the premium increase you expect.