Enter policy and driver details
Example data table
| Scenario | Base premium | Driver | Vehicle | Discount highlights | Estimated discount |
|---|---|---|---|---|---|
| Balanced profile | $1,200 | Age 33, 0 claims, 0 violations | $22,000, 6 years | Bundle + multi-vehicle + autopay | ~18%–28% |
| Low mileage saver | $1,050 | Age 45, 0 claims, 0 violations | $18,000, 8 years | Low miles + pay-in-full + paperless | ~12%–24% |
| Young driver | $1,650 | Age 21, 0 claims, 1 violation | $24,000, 3 years | Good student + safety features + telematics | ~10%–26% |
| Higher risk area | $1,350 | Age 40, 1 claim, 0 violations | $28,000, 2 years | Bundle + anti-theft + autopay | ~10%–20% |
Formula used
This calculator estimates an adjusted premium by multiplying your base premium by several rating factors, then applies discounts using a combined method.
How to use this calculator
- Enter your base premium and core details like coverage, deductible, and mileage.
- Add driver history values for claims and violations to reflect recent risk.
- Toggle discount options such as bundles, telematics, and payment preferences.
- Click Calculate discount to view the results above the form.
- Use Download CSV or Download PDF to export your breakdown.
1) How discount stacking is handled
Insurers rarely add discounts as simple percentages because overlap can exaggerate savings. This tool combines discounts multiplicatively: effective discount equals one minus the product of (1 − d). A 10% bundle plus an 8% multi-vehicle becomes 1 − (0.90 × 0.92) = 17.2%, not 18%. A 45% cap keeps projections conservative.
2) Typical discount ranges you can test
Common levers include bundling (often 5%–15%), multi-vehicle (5%–10%), telematics (about 3%–12% in this model), pay-in-full (1%–6%), autopay (1%–3%), and paperless (0%–2%). Safety items can add small increments: anti-theft and driver-assist are each modeled at 3%, while ABS is 2%. Loyalty is modeled at 2% after two years, 4% after five, and 6% after ten.
3) Risk inputs that shrink discount value
Discounts apply to the adjusted premium, so higher risk factors reduce the share you keep. For example, drivers under 25 use a 1.25 factor, and three claims in three years can raise the factor to 1.25. High-risk territory is modeled at 1.12. When those inputs rise, the same discount rate still helps, but the final premium remains elevated. A business-use rating of 1.10 and higher vehicle value can also lift the starting premium, reducing visible savings.
4) Mileage and telematics change the story
Mileage influences both rating and potential savings. Under 7,500 miles uses a 0.93 mileage factor and adds a 3% low-mileage discount. Telematics is score-based: a 70 score yields roughly 9.3%, while a 90 score reaches about 11.1%. Together, these can meaningfully shift the waterfall from adjusted to final.
5) Use results to compare quotes intelligently
Run scenarios: keep base premium constant, then vary one lever at a time. Compare annual and monthly outcomes, and note which discounts drive the largest steps. If your insurer limits stacking, treat the chart as directional. Bring the output to your agent to ask which discounts require documentation, enrollment, or eligibility verification. Rerun results when changing deductibles; moving from $500 to $1,000 reduces the factor to 0.92.
FAQs
1) What does “adjusted premium” mean?
It is the base premium scaled by rating factors such as coverage, deductible, mileage, territory, and driver history, then add-ons are added. It represents the cost before any discounts are applied.
2) Why is the effective discount capped?
Many carriers limit stacking or exclude certain combinations. The 45% cap keeps results conservative when many options are selected. If your quote allows more, treat this output as a baseline and confirm limits with your insurer.
3) How is the telematics score used?
When enrolled, the score maps to a discount from 3% to 12%. Higher scores increase the discount linearly. If you are unsure, test several scores to see the range, then adjust after you receive an official driving report.
4) Can I use this for liability-only coverage?
Yes. Liability-only uses a lower coverage factor and ignores deductible impacts because comprehensive and collision deductibles typically don’t apply. Discounts such as bundling, payment preferences, and safe driving can still reduce the estimate.
5) Why do claims and violations affect savings?
They increase the adjusted premium through risk factors. Discounts apply to that adjusted amount, so higher-risk profiles may still save dollars, but the final premium remains higher. Use scenarios to compare one claim versus two.
6) What should I export and share with an agent?
Export the CSV or PDF summary with your inputs and the discount breakdown. Ask which discounts require proof, which require enrollment, and whether any are mutually exclusive. Use the insurer’s quote as the final number.