Understand the assumptions behind a liability estimate before comparing it with a policy.
Use the Auto Cover Estimator alongside this illustrative example.
A practical example
With assets of 100,000 and annual income of 40,000, the current model adds two years of income to assets, producing 180,000. That is a formula output, not an insurer’s quote, a legal minimum or a recommendation that 180,000 of cover is appropriate.
Check the result
Compare the model with the policy’s per-person, per-accident and property-damage limits separately. A single total cannot establish how much a particular claim would pay.
Try a comparison
Keep income unchanged and increase entered assets by 20,000. The model exposure rises by 20,000 because it is an additive estimate. A real policy premium will not necessarily move in the same proportion; that requires an insurer’s quotation.
What this does not establish
Premium and deductible inputs provide context; this model does not price a new policy or predict a claim. Ask the insurer about exclusions and local limits.
Try the tools from this guide
Keep reading
How Much Income Protection Cover Do You Need?
Understand how the savings-runway calculation relates to a possible interruption of income.
How Much Life Insurance Cover Does Your Family Need?
Make the replacement-income assumptions visible before discussing cover.
How to Calculate Exact Age and Date Difference
Choose a calendar age or an elapsed-day count according to the question you need to answer.