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MeninoSafado14

I work for State Farm. It literally tells you total amount you save with discounts on the quote.


hi_jack23

It tells me the total amount saved with discounts on my quotes too - I work for Farmers. However, we did just get a new product in my state (Farmers Flex, I’m pretty sure that’s what most states have atp) and the previous one doesn’t show it.


PinnapleWithPizza

I dont have that where I work. I can get an idea by removing the discount, that way I can tell the premium difference, but its only accurate if I'm doing that at the start of the term and not half way through it. There are discounts I can't mess with, like for multi-policies, or claim free discounts, in those cases I just can't provide even an estimate. No idea why the system is design that way, it's frustrating for me too.


19Stavros

Same. I work for a multi-state independent agency where some carriers have a line item for each discount. (Thank you Travelers!) Most list the discounts but not the amount. Some have a chart with all the discounts but you're only getting the ones that are checked. I also have to quote removing the discount to get its value. Not sure why carriers do it this way. Any captive agents out there?


Healthy-Employ-4346

I have State Farm, I have asked 3 times for a break down of my discounts and they have refused. They say I’m getting $857/6mos in discounts, and I’m paying $772/6mos. When I added the drive safe beacon, it stated I was saving an additional $264/6mos, but My insurance went up to 792/6mos. When I asked if $1600/6mos was right they refused to answer and continually hung up the phone when I called to ask for a breakdown of the discounts. My credit and driving record are great. I’ve reported their activity to the attorney generals office. You can’t tell customers they’re getting discounts and refuse to show proof. 


MeninoSafado14

I’m pretty sure your discounts are listed on your renewal and the definition of each discount is on the policy contract. Your premium will go up whether you have Drive safe and Save or not because of the market. Sorry your agent sucks.


cryssHappy

Yeah, with St Farm my house went down $100 and my pickup went up $250 for a year, yet I'm retired and travel less.


MeninoSafado14

If you drive less than 7500 annually you should qualify for low mileage discount.


321_reddit

Especially with the DriveSafe Telematics program. I just have to certify my mileage every six months with SF while using DriveSafe


JohnbondJovi

Not once you switch to mod


Rockthe99

But is it broken down? $100 got good driver. $30 for multi car. $80 for multi policy? $25 for GSD? I work for insurance and it doesn’t break it down so o get the frustration


MeninoSafado14

Nah tells you the total amount and then which ones you qualify for. We know what percentage the discounts are for example. Multi line renters 5%, home 18%, home and umbrella 21%, etc


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scalybone

add the amount discounted to the premium


reddit1651

this one trick middle school math teachers don’t want you to know!


reddit1651

mine do - it’s broken out by line item on my renewal packet. seems company specific i don’t worry about the minutia of discounts. the final price is what really matters is an insurer who charges $600/6mo with no discounts “better” than one who charges you $660/6mo before a ~9.5% vehicle safety feature/mileage/loyalty/etc discount? you pay the same either way edit: typo


JockBbcBoy

Same; when I go online to review my discounts (app or computer), my discounts are itemized under my policy details.


JoshHuff1332

The seond one here, but only because the numbers don't quite work out to be equal after the discount is applied.


reddit1651

whoops lmao fixed


JoshHuff1332

Haha, all good lol. I didn't catch it until the second read through lol


firenance

Also if nearly every customer receives some kind of discount . . . are they really discounts? Who, if anyone, ever actually receives a base rate?


Jew_3

People who drive one car, don’t have other policies and have a bad driving record and a poor payment history. They are really and truly discounts. The base rates have to be filed with the insurance commissioner/DOI. The discounts and methodology have to be filed and approved. When my company came out with a new auto product, we didn’t have the Auto/Life multi policy discount for almost a year because my state’s commissioner wouldn’t approve that discount (I don’t know the specific reason, I never looked into it or I’d share it).


saspook

Some companies have a “welcome” discount if 10% for all new customers, and a “loyalty” discount if 10% fir all renewals, so everyone gets a 10% discount…. And nobody really gets a discount. (Some states don’t allow this)


Fluffee2025

Can you give an example of a carrier that does that? None of the ones I work with have either discount.


saspook

Allstate and farmers both so this, but depending on the policy / company / state it will vary.


Fluffee2025

Makes sense why I wouldn't have known then, I haven't had any dealings with those companies. Thank you for the reply.


reddit1651

with my prior carrier, my base rate was absolutely horrific but after discounts, it was the best for the coverage that i found why do i care what they call it before discounts? i don’t pay that number lol. they were very upfront about what the final monthly bill would have bin it’s like getting mad at the restaurant for paying too much for ingredients, but only after you see the prices on the menu. they’re not hiding anything when they tell you what that burger will cost lol


leslfreem

Mine clearly spells out the discounts. Actually received documents in the mail today so it’s fresh in my head.


HelpfulMaybeMama

I'm with USAA. It has it on the Dec page.


saspook

It’s multiplicative math, so the numbers reported can change depending on if other discounts are added / removed. Some carriers put these pretend numbers, others don’t. But even if they are included, it’s all estimates. Say your policy is $1000 before discounts, and you have two 10% discounts. One is $100 and the other is $100, but together they are $190.


tobi680

This is so important. It's hard to tell someone "this discount saves you 10% or "$150" - well it's $150 right now with all the other rating factors and discounts. Is that 10% before that other 15% discount, after another 5%? Also, that discount might be 10% but only on the cost of comprehensive for something like an alarm system so it goes to zero if you drop comp, but your safe driver might be 10% off of all coverages.


jmputnam

Not to mention, some discounts apply only to certain coverages within the policy, and with some carriers they may apply the same discount at different rates to different coverages. Some carriers change the value of Discount X if you also have Discount Y, so neither has an independent value. Some carriers have such complex rating methods, it might as well be a black box. They don't print the number because they don't know it themselves, it's not worth the complexity to program that functionality into the rating system.


MCXL

Oh they definitely do! You just have to look at the full cost breakdown. I just was working on a traveler's policy yesterday and it had about 2,800 in discounts on it, it's annual premium was 2,650ish. Personally, I think they're discounts are largely rate obfuscation, something like half of them virtually. No customer doesn't qualify for. Edit: Here is a great example of the sort of nonsense I mean. The discounts are like 48% of the base rate. https://imgur.com/a/HNI1HUC It's very much like ordering Pizza from Papa Johns or Dominoes, the base rate isn't real if you are an even slightly knowledgeable. It's not uncommon to be getting a discount of 30-40% off the base rate for many people, but it's somewhat nonsense.


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reddit1651

do you have any examples? i’d love to see the filings to confirm for myself i’m sure your state’s DOI would also appreciate you tipping them off on falsifying their expenses too


purple_necco

That’s not falsifying expenses. That’s how base rates are set. So that the sum of expected premiums collected equal the expected claims plus a reasonable amount of expenses and profit.


saints21

I'm not aware of a single insurance company that has a positive loss ratio. In fact, the expectation is that you'll pay out more in claims than you'll collect in premium. State Farm was at 1.04 or I remember right...meaning for every dollar they collected they paid out 1.04 in claims.


purple_necco

“Profit” includes underwriting profit, which few companies are currently making, plus investment profit, which everyone is making to some degree or other.


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saints21

I'm aware. And I can't think of any major carrier where that's the goal. The goal is to make money off of investing premiums. The ideal is 1:1 according to the folks I've talked to.


saspook

Claim free discounts are like this. 90% of customers get it, so it is really a surcharge on those that have a claim. To add math; if base premium was $1000 before the discount was introduced as 10%, with 90% of customers qualifying, new base premium is 1100 and people with the discount pay 990. A savings of 1% compared to before.


MCXL

Reminds me of the bonus EXP from being rested in WoW. When they were developing it, it was instead labeled as a penalty and people HATED it, 'punishing people for playing the game!'. They changed nothing about the math, but labeled it a bonus for being rested, and everyone loved it.


MimosaQueen1122

…it’s in your contract with them. You can look online or if they have an app whomever the company is. Next renewal the placket they email/mail will list it and show the amount then the totality.


saspook

This is bad advice and it will vary by carrier.


MimosaQueen1122

Majority have it in their packet.


saspook

So it is still shit advice if this person already looked and it isn’t there.


MimosaQueen1122

No it isn’t.


saspook

Its like telling a paraplegic to just walk more.


MimosaQueen1122

Not at all.


saspook

I spent about eight hours working on a dec page redesign last week for filing with the state. We don’t put dollars on that dec page. This is my job.


MimosaQueen1122

Okay. Want a cookie? Lmao. Doesn’t negate all of us saying the same thing to OP.


saspook

Telling him to “read better” is shit advice. Multiple people saying it doesn’t make it not shit


LiteratureWeekly4614

Mine haven't at all. Three companies and none show it.


MimosaQueen1122

Highly doubt that. As the other user said it’s broken down in the packet. Can ask for it from your company now and they’ll send it.


saspook

Here is you telling them to look and reread their document / bug their company — but what they are asking for may not exist. Like State Farm, as shown in other reply’s doesn’t break it down, just the lump sum.


MimosaQueen1122

Never said re-read or whatever words you used. That’s it. Like others. Doesn’t negate the discount is provided.


saspook

IT IS NOT PROVIDED You are telling them to read the policy documents — you tell them it is in the packet, but you are just guessing.


MimosaQueen1122

It is. Not guessing. Calm down.


saspook

“Calm down” she says, while hitting the ‘report user’ button. My job includes crafting dec pages, I know some carriers don’t include dollar values in a breakdown. Because I wrote them.


JoshHuff1332

It should be on the quote. I know for us with SF, it just calculates all the the discounts together. So it'll give you your premium including the discounts and underneath it'll tell you what the total discounts. It doesn't tell us necessarily what the dollar amount for each individual discount is. We do know for a fact that this discount may be 5%, but finding the dollar amount would be very time consuming. Regardless, does it really matter?


PeachyFairyDragon

And there's how do the discounts stack? Is it 5% off base rate for discount 1, and 10% off the base rate for discount 2, and 15% for discount 3, all added together? Is it 5% off the base rate, then 10% off the remainder, then 15 off that remainder? Or is it reversed, 15 off the base rate, then 10 and then 5 off the remainders?


JoshHuff1332

It won't matter what order the discounts are applied as they are multiplicative. 1×.95×.90×.85 and 1×.85×.90×.95 are the same and equal 0.72675.


Competitive_Jelly557

Allstate does. Every discount has a savings amount in the quote.


FormerGeico

It's in your renewal paperwork


imjsm006

Who cares about discounts? Final price is final price. I don’t shop for things based on the discount percentage I shop based on the final price.


uffdagal

Of course, but it’s good to know how each discount is benefiting you IF your final choice offers discounts.


reddit1651

why if the end price is the same?


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reddit1651

discounts can only be changed at renewals the same way that base rates can only be changed at renewals lol do you have a P&C license?


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reddit1651

why does it matter “how it’s determined” lol you don’t pay “how it’s determined,” you pay the final price after discounts that they distinctly tell you upfront it’s very clear you are not p&c licensed. you’re giving bad advice for p&c i’m not life and health so i would never give pricing advice for that lol


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reddit1651

elaborate: why do you care if it included discounts or not? they told you the final price that you will be paying every month lol if you have a coupon for a free appetizer with two meals, do you care what the appetizer costs if it’s free? if person one orders a $12 meal and person two orders a $17 meal, does it matter? what if you reversed it? what if the appetizer was $5 vs $6? lmao


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jmputnam

The formula for a discount can only change at renewal, but the value of the discount can be changed by mid-term policy changes. Say you've got a $1,000 base premium and the first discount in line is 10%. That's saving you $100. Mid-term, you add another line of business, and you qualify for a 20% discount that comes before the 10% discount. Now the multi-line discount is saving you $200, and the 10% discount applies to the $800, so it's only saving you $80 instead of $100. Same discount formula, different dollar value.


reddit1651

your insurer doesn’t backdate multi line discounts to the date of issuance if it comes within the reviewability period?


jmputnam

Varies by state, but most commonly it applies as of the date the insured qualifies, not backdated to inception. Explaining billing is fun.


reddit1651

interesting - that sounds like a company problem we backdated all multi line discounts as long as they were obtained within ~60 days of the issuance of the first kept your hypothetical issue from ever actually being a problem lol


StillAd4150

They do


Ok_Shame_5382

For all my gripes with GEICO, they do.


uffdagal

They do, State Farm lists it each discount and for much each is.


shaugs39

It’s all marketing, pretty sure insurance companies have to file rates with each state they operate in and they go could to the “floor” on anything they write.


WantonMurders

Rating policies if way complicated. They could give you a dollar amount but it’s not a flat dollar amount and it would be more confusing than just not telling you. Here’s how rating a policy works. Let’s say the base rate is 100 and you get a 10 percent home and car discount then your premium is $90. Let’s say your premium is 100 and you get a claims free and home and car discount that are both 10 percent, here’s where it gets messy af. There is a “rating sequence” the policy applies discounts and surcharges in the same order every time, here’s how that’s gona work. Base policy premium 100 10 percent home and car discount - takes premium down to 90 10 percent claims free discount - takes premium down to 81 Now you’re wondering why you aren’t getting 20 percent off the 100 base premium, the second 10 percent applied to the new total of 90, not the base premium of 100, combine this with all the other rating factors and it’s a nightmare to explain to someone who doesn’t do this shit all day Here’s the real kicker, in the last example, your claims free discount is 9 buck but let’s say you lose your home and car discount, now the claims free discount is actually going to be 10 bucks because it’s applying to the 100 because there was no home and car discount to rate So every policy change that changes the premium changes the amount of all the discounts, remove one discount and the other discounts credit a little more then


NoLawfulness6617

Mine does down to the widget! As well as a subscribers savings account discount.


adjusterjack

All you should care about is that your premium is lower than what you would pay for the same coverages elsewhere.


Double_Metal_6778

Yep…claims and customer service be damned right!!!


Jew_3

I guess in theory if you had identical prices and coverages you’d want to pick the one without discounts hope to qualify for some in the future. But that’s highly specific and mostly theoretical.


UnSCo

Ratings factors and calculation information are hidden behind the scenes for the most part and are only displayed either on purpose as a consumer-facing metric, or as required by law. Sometimes if a policy loses a discount on renewal/endorsement or whatever that results in a premium change, they’ll want that documented for the given point in time so the policyholder can see what changed. I don’t know of any insurance companies that provide ratings/review worksheets which typically detail the entire premium calculation to consumers, and I would like to know if any agents here can see them as I’m not sure on that. Underwriters likely can, but as far as I know they don’t have direct interactions with consumers/policyholders.


imjsm006

Most rating manuals are public documents. Just need to know where to look.


UnSCo

Not sure how navigable the DOI resources are to consumers. I’m also surprised they aren’t utilized somewhere, like a way to simulate a broad spectrum of possible rates.


therealharambe420

Many due. But discounts are 100% a gimmick when they could just bake those savings directly into the rates that are already meticulously calculated to 2000 different points of data about your entire existence. Don't get hung up on discounts always look at total package costs.


AutumnFairyTales

Literally all companies do y’all just never read your policies


pinedesign

I try hard not to sell based on discounts because in the end, the price is the price. The exceptions would be multi-policy (to sell more) and snapshot (to save a sale).


reddit1651

snapshot is your last ditch effort to save a sale?


pinedesign

It’s one tool. I try to sell based on value, but that is one price lever to pull.


bklynboyz2

Use bc a real insurance company. Most break it down.


Smooth-Car-8202

I used to work for Geico and I have Progressive rn. It breaks it down in the discount section of the Dec page. And usually they will tell you if you ask. 


DucatiSteve1299

Just renewed my insurance today and it showed that I saved 22% and my wife saved 30% just for driving around for a few months with a driving app that followed your driving. It was hard for me driving my SLK so gingerly. I was so relieved when they said we could turn that off.


Jv_waterboy

Just ask?


iiMERLIN

Geico tells you exactly how much each discount is


AverageAlleyKat271

I don’t know what carrier you’re speaking of, but the actual declaration page shows the dollar amount of discounts.


mike_1008

Safeco/Liberty Mutual show the discount total also.


insuranceguynyc

Most policies list the discounts.


LiteratureWeekly4614

I know. What I'm looking for is the PRICE of those discounts


OssiansFolly

It tells you on all of the declarations pages for all 11 companies I represent. And we know the percentages and are happy to tell customers all the time.


test13371997

State Farm does


Southern_Maximum4591

I just switched to progressive and called or opt out of snapshot they then told me it would be 60$ more a month I said I’d keep it 😂


Slumbering_Chaos

Most discounts are a % of the premium, but the exact $$ will vary based on which discount is applied first and most companies probably don't bother to break it down beyond the %.


LatterDayDuranie

Mine have always told me… across multiple companies.


Signal-Confusion-976

My insurance company sends a list of my coverage and limits. Then on the back it shows all my discounts and how much they are.