Know what full coverage costs, then save more. Adjust limits, add-ons, and claim frequency easily. See savings instantly, export results, and choose confidently now.
Use realistic claim assumptions to estimate risk-adjusted savings.
Sample scenarios help validate your expectations. Values shown are illustrative.
| Scenario | Current Monthly | Full Coverage Monthly | Expected Claims/Yr | Est. Annual Savings |
|---|---|---|---|---|
| City commute | 12,000 | 9,800 | 0.35 | 26,400 |
| Low mileage | 10,500 | 9,900 | 0.20 | 7,200 |
| Higher deductible | 13,200 | 10,400 | 0.40 | 33,600 |
| Added add-ons | 11,700 | 10,900 | 0.30 | 9,600 |
| High risk profile | 15,500 | 13,700 | 0.70 | 21,600 |
This calculator estimates a risk-adjusted annual cost for each plan.
BaseAnnualPremium = MonthlyPremium × 12 SelectedAddOns = Σ(AddOnAnnualCost if selected) EffectiveDiscount = 1 − Π(1 − DiscountRate_i) PremiumAfterDiscounts = (BaseAnnualPremium + SelectedAddOns) × (1 − EffectiveDiscount) TaxesAndFees = PremiumAfterDiscounts × TaxRate ExpectedOutOfPocket = ClaimFrequency × min(AvgClaimAmount, Deductible) RiskAdjustedAnnualCost = PremiumAfterDiscounts + TaxesAndFees + AdminFees + ExpectedOutOfPocket AnnualSavings = CurrentCost − FullCoverageCost NPV Savings (horizon) = Σ [ (Savings_y) / (1 + DiscountRate)^(y−1) ] where Savings_y grows with InflationRate
A difference of 1,000 in monthly premium equals 12,000 per year before taxes. Add-ons behave like fixed operating expenses because they repeat annually. When taxes and fees are 7.5%, every 100,000 of premium-after-discounts adds 7,500 to total cost. Admin fees are pure overhead; a 1,500 annual fee is the same as adding 125 monthly.
Expected out-of-pocket is modeled as claim frequency multiplied by the smaller of average claim and deductible. If frequency is 0.35 and the deductible is 25,000, the expected out-of-pocket is 8,750. If your average claim is below the deductible, most losses are treated as out-of-pocket, which is conservative for small repairs. Raising the deductible can reduce premiums, but it often increases the risk line. Doubling frequency doubles the estimate.
Multiple discounts rarely add cleanly. This tool stacks them multiplicatively: 1 − Π(1 − di). For example, 10%, 5%, and 3% becomes 1 − (0.90 × 0.95 × 0.97) = 17.07%, not 18%. This reduces the chance of overstating savings on premiums. Use toggles if discounts apply only to one plan.
Annual savings equals current risk-adjusted cost minus full coverage cost. Savings rate expresses the same result as a percentage of the current plan. Break-even claims estimates how many claims per year would erase premium-side savings when the full coverage deductible is higher. It divides premium-side savings by the deductible increase, so 10,000 of savings and a 5,000 deductible increase implies 2.00 break-even claims. Negative savings mean you pay more for protection.
Multi-year decisions should consider time value. The calculator projects both plans forward using a premium inflation rate, then discounts each year’s savings with your discount rate to estimate NPV. Over a 5-year horizon, a 6% inflation and 10% discount rate reduces the weight of distant years, so near-term savings dominate. Lower discount rates increase the importance of later years.
It adds premium after discounts, taxes and fees, admin charges, and expected out-of-pocket. Expected out-of-pocket uses claim frequency and the smaller of average claim and deductible to estimate typical yearly exposure.
Start with your recent history, then smooth it over time. One claim in five years is 0.20. If you drive more, park on-street, or commute daily, consider a higher frequency and test sensitivity.
Discounts are usually applied sequentially on the remaining amount. Multiplicative stacking prevents overstating the effective rate. For example, 10% then 5% is 14.5%, not 15%.
Selected add-ons are included in the full coverage plan by default. If your current plan already includes them, enable “Also apply selected add-ons to current plan” to keep the comparison fair.
NPV converts future savings into today’s value using your discount rate. It helps compare options over multiple years, especially when premiums inflate. A positive NPV means the full coverage option is cheaper in present-value terms.
No. It is an estimate tool for planning and comparison. Final pricing depends on underwriting, coverage limits, endorsements, taxes, and local rules. Always confirm with official policy documents and quoted premiums.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.