Calculate adjusted premiums for partial coverage periods
Pro Rata is a Latin term meaning "in proportion." In the context of insurance, a prorated premium is the amount an insurance company charges for a policy that covers less than the full term.
This calculation is commonly used in situations such as:
By using a prorated calculation, insurers ensure that policyholders only pay for the coverage they actually receive. It's a fair and cost-effective way to adjust premiums, benefiting both insurance companies and their customers.
Input the full annual premium of your insurance policy.
Enter the number of days your policy will be active.
View your prorated premium and daily rate.
This tool can be used for various types of insurance policies, including auto insurance, homeowners insurance, renters insurance, and even business insurance.
If you start a new auto insurance policy 3 months into the year, you'll only pay for 9 months of coverage instead of the full year.
When canceling a homeowners policy after 7 months, you may receive a refund for the unused 5 months of premium.