Car Insurance Estimate Calculator

How it is calculated

The estimate multiplies three numbers: premium = base premium × risk multiplier × (1 − discount % ÷ 100). The base premium is the yearly price of a standard policy, in dollars, which you take from a quote or last year's renewal. The risk multiplier is a plain factor: 1 means an average driver, above 1 raises the price and below 1 lowers it. The discount is a single percentage between 0 and 100 for all discounts combined. The tool also shows the monthly figure, premium ÷ 12, and the dollar value of the discount. It shows no result for a negative base premium, a multiplier of zero or below, a multiplier above 10, or a discount outside 0–100. The multiplier is your own assumption, not a rating factor looked up for you, so the output is only as realistic as that number.

Common mistakes

• Entering a monthly price as the base premium. The monthly figure is calculated as the yearly premium divided by 12, so the base must be a yearly amount.
• Typing the multiplier as a percentage (125 instead of 1.25). Anything above 10 gives no result, so use a plain factor such as 1.25.
• Adding several discounts together without checking the insurer applies them additively. Some apply them one after another, which gives a smaller total.
• Using 0 as a multiplier for a very safe driver. Zero is rejected and shows nothing; a safe profile is a number below 1, such as 0.85.
• Treating the result as a quote. Insurers use their own rating factors, so this only shows how a base rate, a risk adjustment and a discount combine.