How to use the car insurance cost split calculator
- Enter the premium amount from your policy or quote. The starting $600 is an example.
- Choose how often you pay it: every month, every 2 months, every 3 months, every 6 months or once a year.
- If the insurer adds a fee to each payment, such as an installment fee, enter it under Fee per payment. Leave it at 0 for none.
- Read the cost per month, per year, per week and per day, and the table that shows the same premium over different periods. Use Copy, Print or CSV to keep it.
Formula
Each payment = premium + fee per payment
Per month = each payment / months covered by one payment
Per year = per month x 12
Per week = per year / 52; per day = per year / 365
This converts a premium between schedules. It does not change the cover, and it does not compare companies.
$600 every six months
A premium of $600 that covers six months costs 600 / 6 = $100 a month and $1,200 a year. That is $23.08 a week and $3.29 a day.
If the insurer adds a $5 fee to each six month payment, each payment is $605, which is $100.83 a month and $1,210 a year, with $10 a year in fees. A policy paid monthly at $90 is $1,080 a year, so a plan of $600 per six months is more per year than the monthly plan in this example, though the monthly plan may carry fees. A premium of $120 paid once a year is $10 a month.
Comparing quotes on the same footing
Insurers quote premiums for different terms, such as six months or a year, and some show a monthly price that includes fees while others do not. Converting each to a cost per month puts them side by side. Compare the same cover, deductible and limits, or a lower monthly price may simply reflect less protection.
If paying monthly adds a fee or a surcharge, include it in the fee line. Paying less often can reduce fees, and some insurers offer a discount for paying in full. The annual vs monthly plan calculator is designed for that comparison.
Fitting insurance into your budget
Premiums are a part of what a car costs. Add fuel, maintenance, depreciation and registration to see the whole picture with the total cost of car ownership calculator. A higher deductible often lowers the premium but raises what you pay if you make a claim, which the deductible comparison calculator helps weigh.
The monthly figure is the amount to plan for in your budget planner even if the bill arrives twice a year, so the money is set aside when it is due.
Assumptions and limits
- The premium is constant for the term and is not adjusted for changes in cover or rating.
- Months are treated as equal, a year is 12 months or 52 weeks, and a day is one 365th of a year.
- Taxes and surcharges are only included if you add them to the premium or the fee.
- The amounts at first are examples. This tool does not price insurance or recommend cover.
Frequently asked questions
How do I convert a six month premium to a monthly cost?
Divide the premium by 6. A $600 six month premium is $100 a month.
What if my insurer charges a fee for monthly payments?
Enter the fee under fee per payment. Each payment becomes the premium plus the fee, and the yearly fees are shown separately.
Is paying monthly more expensive than paying in full?
It can be if there are fees or if the monthly total is higher than the full term price. Convert both to a yearly figure to see.
Does this compare insurance companies?
No. It converts one premium into other periods. To compare companies, enter each quote in turn for the same cover and compare the per month results.