Calculator Inputs
Enter quotes from two or more providers. Use the reference coverage to standardize quotes before comparing.
Formula Used
This tool compares quotes fairly by standardizing differences in add-ons, deductibles, and liability limits.
How to Use This Calculator
- Set your reference liability and deductibles to the coverage you want.
- Select the add-ons you want included in the comparison.
- Enter each provider’s quoted annual premium and coverage details.
- Mark add-ons included in each quote, if applicable.
- Click Compare Rates to see the ranking above the form.
- Download CSV or PDF to share results with others.
Standardized comparison reduces false savings
Quoted premiums can differ because deductibles, limits, and add-ons differ. This calculator converts each quote to a common reference, so you compare like-for-like. For example, moving collision deductible from 500 to 1000 can lower a quote, but the adjusted figure shifts it back toward the 500 reference for fairness. Limits are standardized.
Add-on parity uses typical annual costs
Optional benefits often hide inside “full coverage” bundles. If the reference includes rental reimbursement and roadside assistance, a quote missing them is increased by typical costs (22 and 18 per year). If a quote includes extras you did not select, the normalized total is reduced, preventing overpaying for features you do not need. This is especially useful when one carrier bundles OEM parts or accident forgiveness while another lists them separately.
Deductible and limit multipliers are tunable
Standardization uses multipliers with sensitivity factors k. With k values of 0.08 (collision) and 0.05 (comprehensive), differences matter without overcorrecting. If you want stronger adjustments, increase k; if you want the model to be conservative, reduce k. A small change, such as raising k_liab from 0.10 to 0.15, can noticeably widen gaps between 100000 and 500000 limits.
Monthly budgeting highlights cash-flow impact
Adjusted annual premiums are divided by 12 to estimate a monthly equivalent. That helps compare affordability when providers offer different pay plans. If two adjusted totals are within 3% of each other, the monthly view often makes the decision clearer, especially when aligning with a fixed household budget. The spread metric (highest minus lowest) summarizes how much pricing varies after standardization.
Use service score as a tiebreaker
Price is not the only decision factor. The value score combines adjusted premium with a 1–100 service score. When adjusted premiums are close, a higher service score can justify a slightly higher cost. Treat the score as guidance, and confirm claims handling, repair networks, and exclusions before buying. Exporting CSV or PDF keeps an audit trail you can revisit when renewing.
FAQs
What does “Adjusted Annual” mean?
It is the normalized premium after standardizing deductibles and liability to your reference coverage. It helps compare quotes as if they offered the same limits, deductibles, and selected add-ons.
Why does my normalized premium differ from quoted?
Normalization adds typical costs for missing reference add-ons and subtracts typical costs for extras you did not select. This prevents bundles from looking cheaper or pricier simply because benefits differ.
How should I choose reference deductibles and limits?
Use the coverage you actually want to buy. Set liability and deductibles to your preferred levels, then enter provider details from quotes. The calculator adjusts each quote toward that target for a fair ranking.
What do the sensitivity (k) values do?
They control how strongly deductible and limit differences change the adjusted premium. Higher k increases the impact of coverage differences; lower k makes adjustments gentler. Defaults are moderate for stable comparisons.
Is the service score required?
No. If you leave it, the calculator uses a default value and still ranks by adjusted premium. Add a service score when you want a value-style tiebreaker between similarly priced options.
Can I use this for renewals across years?
Yes. Keep the same reference coverage, then enter the new renewal quotes. Export results to CSV or PDF to track changes in adjusted price, spread, and ranking over time.
Example Data Table
| Provider | Quoted Annual | Liability Limit | Collision Ded | Comp Ded | Add-ons Included |
|---|---|---|---|---|---|
| Alpha Assurance | 1480 | 100000 | 500 | 500 | Rental, Roadside |
| Beacon Mutual | 1625 | 300000 | 1000 | 500 | Rental, Roadside, Accident forgiveness |
| Cedar Shield | 1410 | 100000 | 500 | 250 | Rental, Full glass coverage |
Tip: Keep drivers, vehicle, and address consistent when collecting quotes.