Calculator inputs
Use the fields below to model coverage, loss severity, loadings, and minimum pricing in one page.
Example data table
These sample scenarios illustrate how different assumptions shift modeled premium and exposure.
| Scenario | Asset value | Theft probability | Deductible | Recovery rate | Security discount | Risk factor | Estimated premium |
|---|---|---|---|---|---|---|---|
| Urban vehicle parking | $30,000 | 4.00% | $500 | 35.00% | 10.00% | 1.10 | $863.61 |
| Secured garage fleet unit | $42,000 | 2.40% | $1,000 | 45.00% | 18.00% | 0.90 | $586.92 |
| Portable site equipment | $18,500 | 7.20% | $750 | 20.00% | 6.00% | 1.35 | $1,631.47 |
Formula used
Current Asset Value = Asset Value × (1 − Depreciation Rate)Policy Term ÷ 12
Coverage Cap = Current Asset Value × Coverage Limit %
Claim Severity = max(Coverage Cap − Deductible, 0) × (1 − Recovery Rate)
Effective Theft Probability = min(Annual Theft Probability × Risk Factor × Policy Term ÷ 12, 95%)
Gross Expected Loss = Claim Severity × Effective Theft Probability
Net Risk Cost = Gross Expected Loss × (1 − Security Discount)
Admin Cost = Net Risk Cost × Admin Loading
Profit Load = Net Risk Cost × Profit Margin
Tax Amount = (Net Risk Cost + Admin Cost + Profit Load) × Tax Rate
Indicated Premium = max(Minimum Premium, Net Risk Cost + Admin Cost + Profit Load + Tax Amount)
How to use this calculator
- Enter the asset value you want protected from theft.
- Choose the coverage limit percentage applied to the depreciated asset value.
- Set your deductible, recovery rate, and annual theft probability estimate.
- Adjust depreciation, security discount, admin loading, profit margin, tax rate, and term.
- Add a minimum premium so the model reflects insurer pricing floors.
- Use the risk factor to represent local crime exposure or storage quality.
- Click Calculate premium to show results above the form.
- Review the cards, analyze the graph, and export the result to CSV or PDF.
Frequently asked questions
1) What does this calculator estimate?
It estimates expected theft loss, loaded premium, monthly premium, premium rate on asset value, security savings, and your possible out-of-pocket amount after a total theft.
2) How does a higher deductible change premium?
A higher deductible lowers claim severity for the insurer. That usually reduces expected loss and premium, but it increases the amount you may need to pay yourself after a theft.
3) Why is recovery rate important?
Recovery rate reflects stolen property that may be recovered, salvaged, or traced. A higher recovery rate lowers net claim severity, which generally lowers the modeled premium.
4) What does the risk factor represent?
Risk factor adjusts theft likelihood for location, storage conditions, travel frequency, asset attractiveness, and security discipline. Values above 1.00 raise risk, while values below 1.00 reduce risk.
5) Does policy term affect the result?
Yes. A longer term exposes the asset for more months, so effective theft probability rises. The calculator converts annual assumptions into the selected policy period automatically.
6) What is the security discount?
It represents protective measures such as alarms, immobilizers, trackers, secure parking, guarded storage, or monitored yards. Better protection reduces the modeled risk cost after expected loss is estimated.
7) Is this an insurer’s final quote?
No. Real underwriting can include claims history, policy wording, exclusions, territory rules, inspection findings, minimum premiums, broker fees, and many other pricing variables.
8) How should I compare two theft protection options?
Test different deductibles, security discounts, and coverage limits. Compare premium affordability, potential loss retained, recovery assumptions, and whether the policy still fits your worst-case theft scenario.