Calculator Inputs
Example Data Table
| Scenario | Jurisdiction | Limits / CSL | Umbrella | Rate / $1,000 | Exposure |
|---|---|---|---|---|---|
| Small fleet, split limits | CA | 50k / 100k / 50k | 0 | 1.25 | 5 |
| CSL with umbrella | TX | CSL 250k | 1,000,000 | 1.15 | 3 |
| Minimum focus, low risk | PA | 15k / 30k / 5k | 0 | 0.95 | 2 |
| Package with PIP | NY | 50k / 100k / 25k | 0 | 1.40 | 1 |
| Custom minima and buffer | Custom | 250k / 500k / 250k | 0 | 1.80 | 10 |
Formula Used
- Inflation factor: compound = (1 + inflation%)years, simple = 1 + inflation% × years
- Required threshold: required = statutory_min × inflation_factor × (1 + buffer%)
- Effective selected: selected_eff = selected + umbrella (most components)
- CSL approximation: BI/PD selected_eff = max(split, CSL + umbrella)
- Compliance: meets = (selected_eff ≥ required) when required > 0
- Base cost: base_raw = (rated_load ÷ 1,000) × rate × exposure × term × risk
- Underwriting and floor: base = max(base_raw × (1 + UW%), min_premium)
- Total cost: total = base + taxes + assessments + flat_fees
How to Use
- Select a jurisdiction or choose Custom for edits.
- Pick a coverage package for required components.
- Set inflation method, years, and optional buffer.
- Enter split limits, CSL, and any umbrella layer.
- Add rating options for planning cost scenarios.
- Press Calculate to view and export your report.
Regulatory intent and statutory minimums
Statutory limits define the minimum financial responsibility required for a policy to be recognized as valid within a jurisdiction. In practice, regulators set floors for bodily injury and property damage to reduce uncompensated losses after accidents. The calculator loads common presets, then lets you model future minimums by applying inflation and an optional safety buffer. Use the Custom option when contracts specify different minimums than the state floor.
Split limits, CSL, and umbrella layers
Many auto programs use split limits, such as bodily injury per person and per accident, plus property damage. Some insureds instead choose a combined single limit that can be applied flexibly across injury and damage in one event. Excess or umbrella coverage stacks above primary limits and can materially change effective protection when evaluating compliance. The tool shows effective selected limits after applying any umbrella layer.
Inflation, buffers, and rounding policy
Planning for renewals often requires translating today’s minimums into future equivalents. Compound inflation assumes growth on growth, while simple inflation is linear. A buffer percentage helps risk managers target a margin above legal floors. Rounding supports internal standards, such as quoting limits to the nearest thousand for consistent underwriting files. These options also improve consistency when exporting compliance documentation to stakeholders. This supports consistent reporting across internal teams.
Compliance scoring and operational controls
Beyond pass or fail, a score summarizes how far selected limits sit above required thresholds. A ratio-based score helps compare programs across fleets, business units, or contract requirements. Shortfall and excess values support operational controls: close gaps, avoid overbuying, and document the rationale behind limit selections for audits. When minimums are zero, the component is treated as not enforced in scoring.
Cost modeling for budgeting decisions
The cost estimate uses a transparent load based on rated limits, a planning rate per thousand, exposure units, policy term, and a risk factor. Taxes, assessments, and flat fees are added to reach a total. Underwriting credits or debits and minimum premium floors mirror common pricing mechanics. Sensitivity charts illustrate how premiums shift when rates change, helping teams prepare budgets and negotiate renewals more confidently.
FAQs
What does the calculator treat as statutory minimums?
Statutory minimums are baseline coverage thresholds loaded from the selected jurisdiction or entered manually under Custom. The required threshold may be increased by inflation, safety buffer, and rounding settings for planning and documentation.
How is compliance determined for each component?
A component meets compliance when the effective selected limit is greater than or equal to the required threshold. If the required threshold is zero, the component is treated as not enforced and will not trigger a failure.
How do CSL and umbrella affect results?
When CSL is enabled, the tool uses CSL plus umbrella as support for BI and PD comparisons. Umbrella is added to most components except PIP and MedPay, producing an effective selected limit used in tables and charts.
Why do my costs change with the deductible field?
The deductible reduces the rated load used in the planning cost model, which can lower the base cost estimate. It does not change compliance, because statutory requirements typically focus on limits, not deductibles.
Can I use this for contracts that exceed state floors?
Yes. Use Custom minimums to match contract requirements, then apply a buffer if you want an additional margin. Export the PDF or CSV to attach calculations to procurement files and risk reviews.
Is the premium estimate an insurance quote?
No. It is a transparent planning estimate based on your inputs, not a binding quote. Actual pricing depends on underwriting, claims history, vehicle mix, territory, and carrier rules.