Convert a premium into a rate per $100, per $1,000 or per unit of exposure and compare two quotes on the same basis.
How the rate per unit calculator works
Two quotes with different exposures can’t be compared on premium alone. Converting each into a rate per unit of exposure shows which one is actually priced higher.
Formula
Rate = Premium ÷ (Exposure ÷ Unit).
How to use it
Enter the premium and exposure.
Pick the unit the rate should be expressed in.
Optionally add a second quote to compare.
Worked example
An $18,400 premium on $2.3M of sales is $8.00 per $1,000 of sales.
Frequently asked questions
Why compare rates rather than premiums?
Because exposure changes year to year. A premium increase with a flat rate just reflects growth, while a rate increase means the risk is being priced higher.
What unit should I use?
Use the same basis the carrier rates on: payroll per $100 for workers comp, sales per $1,000 for many GL classes, per vehicle for auto.