Enter Plans to Compare
Example Data Table
Use this as a quick starting point. Replace values with insurer quotes.
| Plan | Base premium | Coverage | Deductible | Discount % | Tax % | Pay frequency |
|---|---|---|---|---|---|---|
| Plan A | 1,200 | 100,000 | 1,000 | 6 | 7 | Annual |
| Plan B | 1,320 | 100,000 | 1,000 | 7.5 | 7 | Quarterly |
| Plan C | 1,440 | 120,000 | 1,500 | 9 | 7 | Monthly |
Formula Used
The calculator estimates each plan’s annual total by scaling the quoted base premium, then applying add-ons, fees, discounts, taxes, and installment fees.
Core = Base × CoverageFactor × DeductibleFactor × RiskFactor × AgeFactor × ClaimsFactor
Subtotal = Core + AddOns + FeesAfterDiscount = Subtotal − (Subtotal × Discount%)
AnnualTotal = AfterDiscount + (AfterDiscount × Tax%)AnnualWithInstallFees = AnnualTotal + (InstallmentFee × PaymentsPerYear)
- CoverageFactor uses a square-root scale:
sqrt(Coverage / ReferenceCoverage) - DeductibleFactor reduces premiums for higher deductibles using a gentle power curve.
- Risk, Age, Claims are percent multipliers, e.g.,
1 + (pct/100).
How to Use This Calculator
- Enter a currency label and set reference coverage and deductible.
- For each plan, paste the insurer’s quoted annual base premium.
- Match coverage and deductible to the quote you received.
- Add discounts, taxes, add-ons, and policy fees for realism.
- Select a payment frequency and any installment fee per payment.
- Click Compare Premiums to view totals and savings.
- Download CSV or PDF after running a comparison.
Premium structure across plans
Premiums start with an insurer’s quoted annual base premium, then shift with coverage and deductible choices. Here, coverage is scaled with a square‑root factor so increases are smoother. Moving from 100,000 to 144,000 raises core premium by about one fifth. Deductibles reduce premium gently; raising a 1,000 reference deductible to 1,500 can lower the deductible factor by roughly 6–10%.
Drivers that move the total most
The biggest swings usually come from risk surcharges, claim history, and riders. A 10% risk adjustment multiplies the scaled premium by 1.10, while a 15% claims surcharge multiplies by 1.15. Add‑ons and policy fees are added after multipliers, so they can dominate cheaper plans. Use the factor list to see whether cost is multiplier‑driven or fee‑driven.
Discounts, taxes, and fees
Discounts apply to the subtotal, then tax applies to the discounted amount. That sequence matters: a 7% tax and a 9% discount do not cancel. On a 1,500 subtotal, a 9% discount saves 135, leaving 1,365; a 7% tax adds 95.55. Installment fees are added per payment, which can add 24–60 annually for monthly billing.
Comparing monthly affordability
Monthly payments help budgeting, but annual totals show true cost. If two plans are close annually, check payment frequency and installment fees. A plan with a 2 fee and 12 payments adds 24 to annual cost and increases the per‑payment amount. Keep coverage and deductible aligned so you are not trading protection for a lower payment.
Using results for negotiation
After you find the lowest annual total, test what changes would make another plan competitive. If Plan B is 120 higher, a 2% discount on a 2,000 subtotal saves 40, and removing a 50 fee saves another 50. Raising deductible from 1,000 to 1,500 may add further savings without changing coverage. Use these targeted insights when requesting revised quotes from each insurer today.
FAQs
What should I enter as the annual base premium?
Use the insurer’s quoted yearly price before optional riders, taxes, or installment charges. If your quote is monthly, multiply by 12, then add any monthly billing fee separately in the installment fee field.
Why does coverage use a square‑root factor?
Square‑root scaling prevents unrealistically large jumps when you compare different coverage amounts. It keeps comparisons stable while still reflecting that higher limits generally cost more.
How do deductibles affect the estimate?
A higher deductible lowers the deductible factor, reducing the core premium. A lower deductible increases the factor. Use the same deductible across plans when you want a true apples‑to‑apples comparison.
Where do add-ons and policy fees fit in?
Add-ons and fees are added after the main multipliers. That means they can change results even when base premiums look similar. Include riders, admin charges, and service fees shown on the quote.
Why is my monthly payment higher than annual divided by 12?
Monthly billing often includes installment fees per payment. The calculator adds those fees to the annual total and then divides by the number of payments, so the per‑payment value reflects billing overhead.
Is this an official premium quote?
No. It’s a comparison estimate to help you evaluate options consistently. Final pricing depends on underwriting, discounts you qualify for, and policy terms. Always confirm with the insurer before purchasing.
Important Notes
- This is an estimation tool. Final premiums depend on underwriting and policy terms.
- Taxes and fees vary by region and insurer. Use your quote documents when possible.
- If comparing different coverages, ensure the same benefits and limits.