How the insurance tools calculate

Questions covered in this guide

Use comparable periods

The premium-change tool divides each supplied premium by its term in months and multiplies by twelve. It compares the resulting annual costs and reports their difference. The percentage change uses the old annual amount as the denominator. A zero old premium has no defined percentage baseline.

Model a deductible scenario

The deductible comparison uses annual premiums and zero or one identical covered loss in a year. The modeled out-of-pocket loss is the smaller of the supplied loss and the flat deductible. Total cost in that scenario is annual premium plus that amount. The model leaves out limits, exclusions, coinsurance, special-peril deductibles and premium changes after a claim.

Keep probability optional

No claim probability is selected by default. If you supply one, the optional expected-cost result is annual premium plus that probability times the modeled out-of-pocket loss. It is a scenario using your assumption, not a forecast. The break-even years calculation divides the extra modeled claim payment by positive annual premium savings; it is unavailable when those differences are not both positive.

A comparison worksheet, not a recommendation

The coverage tool keeps the items you mark for two options visible, including questions you have not answered. It retrieves no insurer quotes, predicts no claim decision and assigns no best-policy score. Confirm the actual limits, exclusions, settlement basis and applicable deductibles in the documents and with the provider.

Methodology version

Version 2026-10-12.2, prepared October 12, 2026. Calculation code and inputs are part of the page review fingerprint. The insurance explanations and this methodology require a named human accuracy review before public approval.