Policy Comparison Tool

Comparing policies is harder than comparing prices because the products differ in more than one dimension at a time. A lower premium usually comes with a higher deductible, a lower limit, or both, and a quote sheet does not net those against each other.

This tool does. It produces one expected annual cost per policy, built from the premium and the share of a typical claim each one would leave with you.

Result

Best on expected cost

Policy C

Its expected annual cost

$1,617

Policy A expected cost: $1,764
Policy B expected cost: $1,624
Policy C expected cost: $1,617
Lowest premium: Policy B
Lowest premium amount: $1,290
Expected claim cost included: $167

This is an estimate based on the values you entered. Actual premiums, coverage, eligibility and pricing vary by provider and by individual circumstances.

Expected annual cost adds the premium to the share of a typical claim you would pay yourself, weighted by how often you expect to claim. It is a planning comparison, not a prediction.

A policy is more than its price. Check exclusions, claim service, endorsements and the financial strength of the carrier before switching.

Policy comparison

Policy	Annual premium	Deductible	Limit	Expected annual cost
Policy A	$1,680	$500	$400,000	$1,764
Policy B	$1,290	$2,000	$400,000	$1,624
Policy C	$1,450	$1,000	$400,000	$1,617

How to use the policy comparison tool

Enter the premium, deductible and coverage limit for each policy.
Set a typical claim size for your situation.
Set how often you expect to claim, from your own history.
Rank by expected annual cost, then read the policies themselves.

What people use this for

Choosing between three renewal quotes.
Checking whether the cheapest premium survives a realistic claim assumption.
Showing a partner or business associate why the cheapest quote is not the best.
Documenting the reasoning behind a policy decision.

Worked examples

Every figure below is produced by running this calculator against the example inputs, so the numbers always match the tool.

Three offers, one claim pattern

A at $1,680/$500, B at $1,290/$2,000, C at $1,450/$1,000, with a $6,500 typical claim once every six years.

Best on expected cost: Policy C
Its expected annual cost: $1,617
Lowest premium: Policy B

A more frequent claimer

The same three policies for someone who claims roughly once a year.

Best on expected cost: Policy A
Policy A expected cost: $2,180
Policy B expected cost: $3,290

Why the ranking can flip

The claim frequency assumption is what decides the answer. At one claim every six years, a high-deductible policy usually wins. At one claim a year, it usually loses - and the same three quotes can rank in a completely different order.

Because of that, entering your own claim history rather than a guess is the most important input in the tool. Use the number of claims you have actually made over the last decade.

Price is where comparison starts, not where it ends

Two policies with identical numbers can behave very differently: what is excluded, how a total loss is settled, whether depreciation is recoverable, how quickly claims are paid, and how financially strong the carrier is.

None of that is quantifiable from a quote sheet. Use this to reduce three options to one or two, then read the actual wording of the survivors.

Methodology and assumptions

What this calculator does, and what it deliberately does not do.

Expected annual cost = premium + (deductible share of a typical claim + any amount above the limit) × expected claims per year.
Claim frequency and size are your estimates. No carrier claims data is used.
All figures are estimates produced from the values you enter. This site has no rate feed and no carrier data, so it cannot quote or price a policy.
Nothing you type is transmitted or stored - the calculation runs entirely inside your browser.

This calculator provides an estimate based on the information you enter. Actual insurance premiums, coverage, eligibility and pricing vary by provider and individual circumstances.

This website is not an insurance company, an insurance agency or a licensed broker. It does not sell insurance, does not provide insurance quotes, and is not authorised to give advice about which policy you should buy.

No result produced here is an offer of insurance or a guarantee of coverage. Only a licensed insurer or agent, working from your verified details, can quote or bind a policy.

Frequently asked questions

Where do I get a claim frequency?

Divide the number of claims you have made by the number of years. Two claims in twelve years is about 0.17.

Can I compare only two policies?

Yes. Leave the third premium at zero and it is excluded.

Does this account for coverage differences?

Only through the deductible and the limit. Exclusions and endorsements are not quantifiable and have to be read.

Why does the tool sometimes prefer a more expensive premium?

Because the cheaper policy hands more of each claim back to you. Over the horizon and frequency you entered, that costs more than the premium saved.

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