Getting and maintaining car insurance is a major part of owning a car. Whether you need car insurance for the first time or you are looking to switch companies, the quote you are offered is not necessarily set in stone. It is possible to negotiate a lower quote and save money over the long haul, especially when you approach the process with an informed plan of action.
How to negotiate a lower car insurance quote
Step 1: Determine if your coverage fits your needs. Very often, quotes are higher than necessary because you are being offered a plan that is not suited to you and your family.
This problem could present itself in a variety of ways. Perhaps you signed onto a plan with added benefits that you do not actually need, such as first party benefits or zero depreciation coverage. Maybe you have not considered bundling your home and auto insurance, and you are paying more to insure each separately than together. Or you might be double-paying for a service that you already have, such as roadside assistance.
Researching the exact details of the plan and determining if it matches your needs may take a little effort on your part, but it is worth it if you find a way to reduce your rate significantly. Whatever the case might be, you should evaluate the plan you are being quoted to guarantee it is right for you.
Step 2: Compare quotes. Reach out to a number of car insurance companies and compare the quotes you are offered along with the details of each policy.
This will give you a preliminary sense of pricing and the value you are getting for your money. It is also in your interests to investigate wide disparities in quotes. If the plans are exactly the same, it will be helpful to know why rates differ.
This can be a bargaining tool if it turns out that one insurance company is not matching their services to the value of the plan.
Step 3: Contact insurance companies. Speak directly to representatives from various companies.
While using a website may be beneficial to an extent, it is much easier to negotiate with a person, who has more leeway to cater to your needs.
Step 4: Use competitor information to your advantage. While you are speaking to a representative, be sure to mention that another company is offering you a lower price.
Go into specifics about what the competitor’s price is, and see if the representative is able to match or even beat the competitor’s quote.
Step 5: Ask questions about special discounts that may apply to you. If you are really serious about getting a lower quote, then ask about every possible option for reducing rates.
The options here are vast, but some possibilities include, as mentioned above, bundling your home and auto insurance, changing the amount of your deductible, taking advantage of special discounts offered based on your employer or line of work, and other reductions based on your individual driving habits.
Asking about these possibilities and others are easy ways to get a better rate and, ultimately, a plan that is more suited to your lifestyle.
Step 6: Make a decision. Once you have gathered all the information about pricing and plans, make a decision on the best plan for you.
Take all factors into consideration and not simply price alone. After all, paying a lower rate is not always worth major sacrifices in the quality of the insurance you are getting. Balancing cost with quality ensures you are paying fairly for a reliable plan.