You can’t negotiate your car insurance rate, but you can ask about discounts, choose your coverage wisely, compare quotes, and use a few other methods to lower your rates.

Written by Jaya Anandjit

Edited by Jessica Barrett

Reviewed by Brice Regling

Updated on Feb 20, 2024

Jump to:

You can’t negotiate your car insurance rate
Lower the rate for your existing policy: discounts & coverage selection
Find a cheaper rate with another provider: Shop around
Keep your rate down in the future: Practice safe driving and avoid claims
Other tips to help lower your car insurance premiums
FAQs

Load full table of contents

Car insurance

rates can’t be negotiated, but you can speak to your insurance agent about discounts, select coverage that works for your budget, compare quotes to find the lowest rate, and use a few other savings tips to secure better premiums.

You can’t negotiate your car insurance rate

Insurance providers use very specific calculation methods and algorithms to determine car insurance rates. Moreover, the insurance industry is regulated by each state’s Department of Insurance—so once your rate is determined, it technically can’t change.

But you can:

Speak with your provider about discounts and alter your coverage levels to bring your rate down

Compare quotes from other providers to potentially find a better offer

Earn affordable premiums over time by maintaining a clean driving record and avoiding claims

Learn more:

10 Essential car insurance hacks for 2023

Lower the rate for your existing policy: discounts & coverage selection

If you want to lower your car insurance rate immediately, the top two ways to do so involve speaking with your insurance agent.

Ask about discounts

Reach out to your insurance agent and ask if there are any

car insurance discounts

that may apply to your policy. Some discounts can save you up to 30% on your car insurance rate, and you can stack savings if you’re eligible for more than one discount.

Popular discounts include:

Accident-free or safe driver discount: Remain accident-free for at least three years to earn a good driver discount.

Good student discount: High school students and college students can save on car insurance by maintaining a B average.

Bundling discount: Combine your homeowners insurance and auto insurance or renters insurance and auto insurance to earn a discount on both policies.

Anti-theft discount: Most providers offer discounts for vehicles with factory-installed or aftermarket anti-theft devices.

Pay-in-full discount: Gain savings when you pay your car insurance premium in full for the term.

Low-mileage discount: Earn a discount for staying within a certain annual mileage limit.

Safety equipment discount: Save on the cost of car insurance if your vehicle has safety features like airbags, anti-lock brakes, and daytime running lights.

Defensive driving discount: Complete an approved defensive driving course to earn a discount, as long as it’s not court mandated.

Telematics Discount

Providers like Progressive, Allstate, GEICO, and State Farm offer telematics programs to help safe drivers earn discounts of up to 40% on premiums. You can use a mobile app or in-vehicle device to monitor your driving habits and get rewarded with a lower rate if you consistently exhibit safe driving behaviors.

Keep in mind that some telematics programs, Like Progressive’s Snapshot, may increase your rates if unsafe driving is detected.

Revisit your coverage

Ask your insurance agent to go over your coverage, policy limits, and deductibles. While it may not be wise to remove coverages like comprehensive coverage or collision insurance, there may be other coverage add-ons that you can do away with—like the roadside assistance you haven’t used.

A higher deductible for comprehensive, collision, or personal injury protection (PIP) can also lower your rate, but keep in mind that you be liable for higher out-of-pocket costs if you need to file a claim.

Learn more:

5 easy steps to find the best car insurance

Find a cheaper rate with another provider: Shop around

The best way to secure a better car insurance rate is by shopping around for auto insurance quotes from other providers.

Comparing

car insurance quotes

from at least three to five car insurance companies can help you find the lowest potential rate for your drive profile—and as per the tips listed above, you can seek discounts to make your new rate even more affordable.

Use competitor information

When seeking quotes from different companies, be sure to mention that another company is offering you a lower price. While price matching in insurance is a myth, letting the agent know you found a lower rate will alert them to possible coverage disparities.

The

Jerry

app is a great resource for quote comparisons.

You can build a driver profile in the app, select your coverage levels and applicable discounts, and then view personalized quotes from multiple insurance providers.

Once you see a quote that works for you, Jerry will facilitate the buying process to get your new car insurance policy activated.

Get Car Insurance Quotes

Keep your rate down in the future: Practice safe driving and avoid claims

Securing an

affordable auto insurance rate

may take some effort, but keeping your rates down for future savings is as simple as driving safely and avoiding claims.

The

Insurance Information Institute

(III)1 notes that car insurance claims typically raise rates—especially claims following an at-fault accident. Although your premium increase will depend on your insurer, rates generally go up by 20% to 40%.

Additionally, traffic violations like speeding tickets and DUIs will certainly increase your premiums, with a national average rate increase of 29% for speeding tickets and 70% for DUIs.2

To ensure your premiums remain low for years to come—and to help you lock in a good driver or accident-free discount—be sure to practice safe driving to avoid car accidents and moving violations.

Pro Tip: Use Jerry’s Driveshield app feature to easily track your driving and receive scores to identify areas to improve.

Plus, earn perks for safe driving habits.

Learn more:

Tips to help you get a clean driving record

Other tips to help lower your car insurance premiums

Aide from seeking discounts, reviewing your insurance coverage, shopping for new quotes, and maintaining a clean driving record, here are some other car insurance saving tips to consider:

Maintain a good credit score: Auto insurance companies typically use your credit score to assess your risk level. Higher credit scores are associated with less risky policyholders, while poor credit scores can raise your rates in some states.

Raise your deductible: If applicable, increasing your PIP, collision, or comprehensive deductible can lower your rates.

Keep continuous coverage: A lapse in coverage can increase your future insurance rates. If you decide to sell your vehicle or won’t be driving for six months or more, consider buying a non-owner insurance policy.

FAQs

How do insurance companies calculate rates?

Insurance carriers use a variety of factors to determine car insurance rates. Some of the most widely used factors include your location (ZIP code), age, gender, credit score, vehicle type, driving history, insurance record, and homeowner status.

Why are car insurance rates non-negotiable?

Car insurance rates are non-negotiable because rates are state-regulated, and each car insurance provider uses a specific calculation method to determine precise rates for each driver.

What is the best way to lower your car insurance?

The best way to lower your car insurance is by seeking discounts, changing your coverage, or shopping around to find a better rate from a different provider.

Why is car insurance so expensive?

Car insurance rates increased significantly following the pandemic. Since 2021, rates have increased by 26%, and over the past year, medical and auto industry inflation has influenced further rate increases across companies.

How much does insurance cost?

The average cost of insurance in 2023 is $2,264 for full coverage.

What are some tips for getting a lower car insurance quote?

Drivers with clean driving records and minimal to no claims usually get the lowest car insurance quotes. Additionally, driving a safe used vehicle, maintaining a high credit score, and living in a risk-free neighborhood can help you secure lower premiums.

SOURCES

https://www.iii.org/article/if-i-file-claim-will-my-premium-go

https://www.forbes.com/advisor/car-insurance/rate-increase-after-dui/