Estimate how much cash you should keep available to safely cover auto insurance deductibles and claim risk.
This amount is designed to cover deductible costs with a buffer based on your selected risk tolerance.
An insurance emergency fund isn't just a savings account; it's the capital that allows you to choose higher deductibles safely. Without this liquidity, a high-deductible plan is a liability, not a strategy.
Why save more than just the deductible? Claims rarely happen in isolation, and secondary costs—like rental car overages or immediate repairs—often exceed the base deductible amount.
When your emergency fund doesn't match your risk profile, you're forced into "defensive insurance"—paying higher premiums for lower deductibles just to avoid a cash crunch.
Calculate exactly when a higher deductible pays for itself through premium savings.
Model how a single claim today impacts your insurance costs for the next three years.
Use demographic and regional data to estimate your statistical likelihood of filing a claim.