MarginShock

Insurance premium increase
calculator

Commercial auto, general liability, and workers' comp renewals can jump sharply in a single year. Spread across the jobs you do, a big premium increase becomes a specific amount per job, and that's the number to price against.

Worked example

Example: premiums from $1,800 to $2,340 a month, ~150 jobs a month

$3.60

extra cost per job

Extra / month
$540
Price increase
0.9%

Illustrative · enter your own below

Surcharge engine · inputs

Example numbers — replace with yours

Example: premiums from $1,800 to $2,340 a month, ~150 jobs a month

The cost that changed
$
$
How much you use

The cost above is already per month, so 1 is usually right.

How many jobs the cost is spread across.

Your pricing
$

Used to express the surcharge as a %.

%

e.g. 20 for 20%.

Month change

▲ 30.0%

Extra / month

$540

Extra / job

$3.60

No account needed. Inputs are saved anonymously to build industry benchmarks — never shown individually. Privacy

(Finding your numbers)

What to enter.

  1. 01Previous and current cost: your total monthly premium before and after renewal (annual premium ÷ 12). Include all policies that rose.
  2. 02Usage: enter 1, since the premium is already a monthly amount.
  3. 03Jobs per month and average job price: from your invoicing software.

(Pricing it)

Passing on a insurance increase fairly.

01

Fold it into prices, not a surcharge

Insurance increases rarely reverse, and customers don't expect an insurance line. A modest price increase is the usual approach.

02

Shop the renewal too

Get competing quotes before passing the full increase on. A broker can often recover part of it.

03

Time it with your renewal

Announce the price change shortly after renewal, so the reason is current and easy to explain.

(FAQ)

Insurance cost questions

Guide: how much to raise prices →
01Can I add an insurance surcharge to invoices?

You can, but it's uncommon and tends to draw questions. Most businesses build insurance into their base price and adjust it at renewal.

02How do I spread an annual premium increase across jobs?

Divide the annual increase by 12 to get a monthly figure, then by jobs per month. The calculator does this when you enter monthly premiums.

03What if the increase only applies to some vehicles?

Use the total premium change. The cost is still spread across all the work your business does.

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