Policy Renewal Calculation
Hi all, I got the renewal policy today for my 9 yr small dog and trying to pick the right deductible for next year's coverage (I have been choosing $300 deductible for the past 5 years).
I made a quick excel sheet and plugged in all the deductible options, corresponding premiums, 90% coinsurance, and calculated with some expense samples using the formula insurance company provides on their website (pic #3).
Pic#1: The values are the total out of pocket cost (expenses not covered + premium). The highlighted cells are break even points.
Pic#2: similar to pic#1 but the values are the savings from using the insurance (not trying to make money from the policy, just for the calculation purpose! We never break even for the last 5 years but were very close for the past 2 years).
Based on my calculations, the highest deductible makes more sense, and it comes with lower upfront premium cost.
I was wondering if my calculations were accurate or not? And if so, what's the reason to choose lower deductible with higher premiums?
Thanks in advance for your advice!