Can I Negotiate for Lower Car Insurance?

Often, you come across statements saying; “you cannot negotiate insurance rates”, which may be true. However, rates are totally different from premiums. Rates refer to the charging structure, which is determined by the company and approved by authorities in each state. However, companies apply many discounts to reach the final premium amount. When you negotiate, you aren’t questioning their rating structure but just asking for more discounts, which is a reasonable thing to do.

Checking to see if an auto insurer can offer better prices is negotiation and worth the time. Almost every agent you talk to would check for further discounts before they can tell you that this is their best quote. Few companies or agents may be awkward or difficult but essentially it is their job to make sure you are getting all the discounts you can and help you in the right direction and certainly you aren’t being funny for asking.

No matter how detailed vehicle insurance quote algorithms are, they may not take everything into account. And often there are discounts you can get after you get the quote based on the way you buy, pay and take risks. So, there is room for negotiating for lower auto insurance depending on how much you and the agent are willing to entertain each other’s requests or give and take.

And the best way of doing it is to call the company or agent and start asking the following questions.

  1. Do you have early renewal discounts? Some auto insurers even advertise the fact that they offer savings for people who decide to renew or buy their policies 7 – 14 days in advance. So, if you are prepared to pay the premium or the first installment now, you may be able to get a further 5% discount from some companies. So, doing your vehicle insurance shopping early can be helpful.
  2. Can you do a better price if I switch now? Some companies knock around 5% off for customers who are prepared to switch to them. You can always speak to them about it and ask if there is such a thing to sweeten the deal. You never know if you don’t ask and you may be surprised to stumble upon a special offer. Recently, one automobile insurer was offering 10% savings for something as simple as liking their Facebook profile. If you don’t ask, you don’t find out.
  3. Is it cheaper if I pay the full premium now? Many companies use this sales technique of putting the customer on the spot. If you are prepared to take the policy and pay the full premium, you can get yourself about 9% cheaper vehicle insurance. Some carriers offer incentives for full payment anyway because this eliminates the risk of cancellation due to customer defaulting on installments.
  4. Is there a discounts for setting up automatic payments. Some companies offer this discount and all you need to do is to set up direct payments from your bank, debit or credit card to the insurance company to get it.
  5. How much do I save for increasing deductibles? Normally automobile insurance quotes come with standard deductibles for collision and comprehensive coverage. However, you can get lower premiums if you can increase deductibles. You may need to involve in a little give and take like this and that is the definition of negotiation.
  6. Are there any loyalty discounts? This works well when negotiating with your current auto insurance provider. Companies apply this discount at different times and levels and some keep it for this type of occasion.
  7. Is there anything else I don’t know? For example, many quote forms don’t ask for it but some companies may offer a little discount for parking your car in a garage or driveway. Also, there are many other small savings offered for things like going paperless or buying directly from the insurer’s website. An experienced agent would be able to check these out quickly if you ask nicely. Calling them gives you a chance to take advantage of an agent’s knowledge.

If you don’t want to bargain with anyone or you are shy about it, the next thing to do is to shop around as best as you can to find the lowest price and switch. This is an alternative always open to everyone but some people like to see if they can negotiate a lower vehicle insurance price with their current providers and stay.

Then, they will need to negotiate. If the policyholders or applicants are willing to take certain actions like buying the policy earlier, pay faster or automatically and increase deductibles they often will find that car insurance companies are willing to work with them to find a way to lower their premiums. Even for just asking, a knowledgeable agent would be able to suggest ways they can help.