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Formula used
The calculator estimates an annual premium by combining a coverage subtotal with risk and discount multipliers:
Subtotal = LiabilityCore + PhysicalDamage + OptionalCoverages RiskMultiplier = Mileage × Radius × Industry × Age × Experience × Claims × Violations × Value × DriverCount DiscountMultiplier = Safety × Telematics × Garage × MultiVehicle EstimatedPremium = Subtotal × RiskMultiplier × DiscountMultiplier × PlanFactor TotalAnnual = EstimatedPremium + (EstimatedPremium × StateFees%) + PolicyFee
- LiabilityCore starts from a per-vehicle base rate and scales by limit.
- PhysicalDamage is a percentage of stated value, adjusted by deductible.
- Risk factors reflect exposure (miles, radius) and driver history.
- Discounts apply multiplicatively when selected.
How to use this calculator
- Choose vehicle class and fleet size.
- Set average vehicle value, mileage, and operating radius.
- Enter driver counts, age, experience, and recent claims.
- Select liability limit, deductible, and coverages needed.
- Pick add-ons/discounts, fees, and a payment plan.
- Click Calculate to view totals and the breakdown.
- Export CSV or PDF to save and share estimates.
Example data table
| Scenario | Vehicles | Class | Radius | Claims (3yr) | Liability | Estimated annual premium |
|---|---|---|---|---|---|---|
| Local service fleet | 3 | Medium-duty | Local | 0 | $1M CSL | $6,400.00 |
| Regional delivery | 6 | Medium-duty | Regional | 1 | $2M CSL | $17,850.00 |
| Long-haul trucking | 10 | Heavy-duty | Long haul | 2 | $1M CSL | $55,200.00 |
Example figures are illustrative only. Your inputs and local market conditions can shift premiums materially.
Cost drivers and exposure
Commercial auto pricing is dominated by exposure: vehicles, miles, and radius. This calculator starts with a per‑vehicle base and then applies mileage and radius factors to reflect local, regional, intermediate, and long‑haul operations. Moving from 10,000–25,000 miles to over 50,000 miles uses a higher mileage factor, and long‑haul radius adds load to mirror time on the road. Industry use is also weighted, so delivery and towing scenarios run higher than typical service work.
Coverage structure and limits
Liability is modeled as 70% of the base premium and scaled by limits, such as $500k, $1M, $2M, or $5M. Physical damage is estimated from stated value: collision uses 3.2% of value and comprehensive uses 1.6%, both adjusted by deductible. Uninsured motorist adds 8% of the liability core to reflect underinsured losses. Medical payments are priced at $1.20 per $1,000 per driver, and cargo uses $4.50 per $1,000 of limit.
Fleet scale and discount behavior
Fleet size affects both cost and credit. Multi‑vehicle discounts apply at 3–5 vehicles (4%), 6–10 vehicles (8%), and 11+ vehicles (12%). Optional credits multiply, not add: safety programs reduce 5%, telematics reduces 7%, and secure parking reduces 3%. Because discounts compound, stacking all three can cut more than any single credit alone.
Claims, violations, and driver mix
Driver characteristics influence underwriting. Younger average ages and low experience raise the age and experience factors, while claims in the last three years step the claims factor upward, with 3+ claims using the highest band. Violations increase the violations factor, and extra drivers beyond vehicles add a small loading, reflecting scheduling and supervision complexity.
Budgeting outputs and scenario testing
The output includes a breakdown plus plan and fee impacts. Payment choices apply factors such as 1.03 (semiannual), 1.06 (quarterly), and 1.08 (monthly), while state fees add a percentage and a policy fee is included. Export CSV for benchmarking bids, and export PDF for approvals. Re‑run scenarios to compare limits, deductibles, and discount eligibility before requesting formal quotes.
FAQs
What does the estimate include?
It combines liability, physical damage, optional coverages, fees, and plan charges. It also applies mileage, radius, industry, driver, and claims multipliers, then discounts such as safety, telematics, and secure parking.
How does the deductible change the result?
Higher deductibles reduce collision and comprehensive costs using a lower deductible factor. Liability pricing is not reduced by the deductible, so the total change depends on how much physical damage coverage you select.
Why do miles and operating radius matter?
More miles and longer radius increase time on the road, congestion exposure, and severity potential. The calculator raises the risk multiplier as you move from local to long‑haul and from low mileage to high mileage.
Can I model hired and non‑owned auto?
Yes. Enable the hired and non‑owned option to add a flat charge plus a small per‑driver amount. Use it to approximate exposure for employee rentals and non‑owned vehicles used on company business.
How should I use the CSV and PDF exports?
Export CSV to compare multiple scenarios in a spreadsheet and track month‑to‑month budgeting. Export PDF to share the assumptions, totals, and breakdown with stakeholders, brokers, or fleet managers.
Is this a quote I can purchase?
No. This is a planning estimate and cannot account for VIN details, garaging address, loss runs, underwriting rules, or insurer pricing models. Use the output to prepare inputs and questions before requesting market quotes.