Calculator Inputs
Formula Used
The calculator estimates an annual premium by scaling a base amount from vehicle value and then applying multiplicative risk factors. Discounts are applied after risk adjustment, followed by flat add-ons and fees.
This is a planning model for comparisons, not an insurer quote.
How to Use This Calculator
- Choose territory, use type, and coverage level to match operations.
- Enter vehicle value, age, annual miles, and driver details.
- Add claims, accidents, and tickets from the last three years.
- Select a deductible and optional discounts or add-ons.
- Press calculate, then export CSV or PDF for records.
Example Data Table
| Scenario | Territory | Use | Vehicle Value | Miles | Deductible | Estimated Annual |
|---|---|---|---|---|---|---|
| Starter | Suburban | metered taxi | 15,000 | 14,000 | 1,000 | 515.88 |
| Busy City | Urban | app hailing | 22,000 | 26,000 | 500 | 689.28 |
| Airport Focus | Urban | airport runs | 28,000 | 22,000 | 1,000 | 760.07 |
| Low Miles | Rural | private hire | 18,000 | 9,000 | 1,500 | 379.15 |
Premium drivers used in the estimate
This calculator starts with a base premium equal to 1.2% of vehicle value, with a minimum of 300 per year. It then applies territory, use-type, and coverage multipliers that represent operating exposure. Urban territory uses 1.35, while rural uses 0.95. Airport-focused use uses 1.40 because mileage density and passenger turnover tend to be higher. Liability-only coverage applies 0.85 to reflect narrower protection.
Mileage and vehicle-age sensitivity
Annual miles increase the estimate once miles exceed 12,000. The mileage factor rises gradually and is capped at 1.25, helping you compare high-utilization and low-utilization vehicles without extreme results. Vehicle age adds 2% per year after year three, capped at 20%. These caps keep scenario comparisons stable for budgeting. If miles are below the threshold, the factor stays near 1.00.
Driver profile and experience weighting
Driver age and commercial experience affect the premium through separate factors. Drivers under 25 use a 1.35 factor, ages 25–34 use 1.15, and ages 35–54 use 1.00. Experience below two years uses 1.20, while over ten years uses 0.95. Together, they emphasize operational discipline and familiarity with passenger service. Use these fields to reflect hiring standards and driver retention.
Claims, accidents, tickets, and deductibles
Loss history is modeled with additive surcharges converted into multipliers. Each claim adds 18% up to an 80% cap, each accident adds 12% up to 60%, and each ticket adds 6% up to 45%. Deductibles reduce premium above 500, down to an 18% reduction at 2,500. Lower deductibles can increase costs modestly. The deductible scenario chart visualizes this tradeoff instantly.
Discounts, add-ons, and fee structure
Discounts stack multiplicatively: anti-theft reduces 5%, dashcam reduces 3%, and garaging reduces 4%, then a no-claims discount of up to 25% is applied. Add-ons are flat annual charges, so you can see their direct impact. Finally, an admin fee of 25 and a 3% regulatory fee are included to approximate total annual outlay. Exporting helps document assumptions for renewals and bids across multiple quotes.
FAQs
What does “estimated premium” represent here?
It is a planning estimate built from vehicle value and risk multipliers. It helps compare scenarios consistently. It is not a binding quote, and real underwriting may add exclusions, minimum premiums, or documentation requirements.
Why do deductibles change the premium?
A higher deductible shifts more loss cost to the policyholder, reducing expected insurer payouts. This model lowers premium above 500, up to an 18% reduction at 2,500, and slightly increases premium for deductibles below 500.
How is mileage treated in the calculation?
Mileage increases exposure. The model starts adding a mileage factor after 12,000 miles per year and caps it at 1.25. This keeps comparisons meaningful without allowing extremely high mileage to dominate every other variable.
How do discounts combine?
Discounts stack multiplicatively, not additively. Anti-theft, dashcam, and garaging reduce the risk-adjusted premium first, then the no-claims discount percentage is applied. This mirrors how many rating plans compound multiple credits.
Can I use this for fleets with multiple vehicles?
Yes. Run a separate scenario for each vehicle and driver profile, then export CSV files for consolidation. For fleets, standardize assumptions like territory and use type so differences reflect vehicle value, mileage, and history.
What should I enter for claims, accidents, and tickets?
Use counts from the last three years for the primary driver or operating unit. Keep definitions consistent across scenarios. If you are unsure, run a low, medium, and high set of counts to stress-test the budget range.