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Calculating Insurance Costs
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Insurance companies bill customers in two different ways - gross billings or per unit. Either way you get a bill for the year. To calculate your cost per mile, all you need to do is divide your cost for insurance by the miles covered for the year. Let's give you an example. Your insurance costs are $999.00 per year and you drove 100,000 miles for the year. Divide $999.00 by 100,000 giving you a figure of .00999 per mile for insurance. You also need to calculate the per day rate. Here is an example: your insurance costs you $875.00 per year. You divide $875.00 by 365 days for a 7 day work week or 260 days for a 5 day work week giving you the cost per day. The 7 day work week would give you a figure of $2.39 per day. The 5 day work week would give you a figure of $3.36 per day.
This is the formula for calculating cost per mile.
TOTAL INSURANCE FOR THE YEAR + TOTAL MILES FOR THE YEAR = COST PER MILE FOR INSURANCE
This is the formula for calculating cost per day
TOTAL INSURANCE FOR THE YEAR + 365 OR 260 = COST PER DAY FOR INSURANCE.
Insurance Costs Worksheet
TYPE MILEAGE COST COST YEARLY PER MILE
Liability ___________~____________= ______________
Comprehensive ___________~____________=+______________
Cargo ___________~____________=+______________
Physical Damage ___________~____________=+______________
Dead Head ___________~____________=+______________
TOTAL INSURANCE COSTS ____________
TOTAL COST FOR INSURANCE PER MILE ______________
TOTAL COST _____________
Days + 365 or 260 ~_____________
COST PER DAY =_____________
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