Can you negotiate lower auto insurance rates?
It's possible to negotiate lower auto insurance rates by simply calling up your insurance provider and explaining your situation. Perhaps you were offered a better deal or found a cheaper auto insurance quote online. Whatever your reason, how to negotiate lower auto insurance rates involves being persistent, asking about car insurance discounts, and hanging up and calling again if you find an insurance agent that won't budge. But what's the best secret to finding a lower rate? Use our free comparison tool below and compare multiple auto insurance quotes in seconds.
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Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed insurance agent with 23 years of experience helping people protect their families and businesses with the best insurance coverage to meet their needs. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
UPDATED: Jan 5, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Jan 5, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
You can call your cell phone or cable company to negotiate a lower rate. But can you do the same thing with car insurance?
Is it possible to negotiate with your car insurance company for better rates? Can you call your insurance company to secure a better deal on car insurance? Or is this a stupid, impossible idea? Keep reading to find out everything you need to know about negotiating with your car insurance company for lower rates.
Read more: Finding the Best Deal on Auto Insurance
Yes, It’s Possible to Negotiate Lower Car Insurance Rates
You can find plenty of stories online about people calling their car insurance companies to negotiate lower rates.
Negotiating a lower rate from your insurance company is similar to negotiating a lower rate with any other service provider: you call the company, politely explain the situation, and see if they can offer a better rate.
As with other services, your chances of negotiating a lower rate are higher if you are a longer-standing, higher-value customer. Somebody who has been with a car insurance company for 15 years, for example, and has multiple home and auto insurance policies with the company, is in a better position to negotiate a lower rate than someone who bought an insurance policy last week.
Negotiating a better policy also works well if you come prepared: research other policy options from competing insurance companies. Let’s say you’re paying $1,500 for car insurance from Geico but get a quote for $1,200 from Nationwide. If the policies are identical, then you may be able to contact Geico to negotiate lower premiums.
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Tips for Negotiating Lower Car Insurance Premiums
Be Polite But Firm: Few people have had success with calling a car insurance company and demanding lower premiums. Most negotiation guides recommend a polite but firm approach.
Be Persistent: Most car insurance company representatives will initially deny your request to lower insurance premiums. Be persistent with your request. Explain that you have been with the company for a long time, for example, or mention that you have multiple insurance policies with the company. Keep at it and make a strong case.
Research Scripts Online: You can find various scripts online explaining how to negotiate lower car insurance premiums, including exactly what you should say to maximize your chances of getting a discount. The scripts also explain how to respond when your insurance company denies your request.
Research Comparable Auto Insurance Policies: Sometimes, you’re not entitled to a discount. You’re already paying a very competitive rate for car insurance. Try to find comparable car insurance policies at a cheaper price. If you can’t find a cheaper rate, then you might already be paying a great rate for car insurance.
Ask About Bundling or Renewal Discounts: An insurance agent may be more amenable to your car insurance negotiation tactics if you ask about bundling policies. You might ask how much you would save on car insurance by adding a home insurance policy, for example.
Ask About Other Discounts: Insurance companies offer dozens of different discounts. In many cases, it’s up to the customer to find and request these discounts. Ask about discounts for renewing your policy, for example, or for prepaying for an entire year upfront. You might get a discount for safety features, defensive driving courses, and more.
Ask About Changing Your Policy: Sometimes, the best car insurance discounts come from adjusting your policy. You might want to drop roadside assistance, for example, if you already have a separate AAA membership.
Understand your Slug Policy: Your insurance policy might have a lot more value than you realize. It might have uninsured and underinsured motorist coverage, for example. Take the time to read through your current insurance policy before trying to negotiate a better deal.
Shop Around: There are plenty of rate comparison tools online – including on our own website – that allow you to easily compare car insurance premiums between companies. Take the time to request a few customized quotes online. If the rate you are being offered is significantly lower, then you can use this information during negotiations.
Prepare for Rejection: You’re not the only person who wants to pay less for car insurance. Insurance companies frequently get calls from people wanting lower insurance premiums. The customer service agent may tell you that the rates are fixed, for example, and that they cannot be adjusted for some reason or another. Typically, this isn’t true, and rates are negotiable.
Ask for a Higher Deductible: One of the easiest ways to get a discount on car insurance premiums is to raise your deductible. Raise your deductible from $500 to $1,000, for example, and instantly lower car insurance premiums.
Hang Up and Call Back: Sometimes, you get the wrong customer service agent who just won’t budge. In this case, you may want to call back and try again. Sometimes, it’s just not meant to be.
Read more: What is the process for renewing my auto insurance policy?
Final Word
You can absolutely negotiate lower car insurance premiums from your insurance company. Using the right strategy and scripts and armed with the right information, you should be able to secure a lower rate on car insurance premiums.
Call your car insurance provider to negotiate a lower rate. Your chances of negotiating a better deal are higher if you have lots of business with that insurance company or have been a customer for a long time.
Frequently Asked Questions
Can I negotiate lower auto insurance rates?
Yes, it is possible to negotiate lower auto insurance rates by contacting your insurance provider and discussing your situation. Persistence, asking about discounts, and considering other quotes can improve your chances of securing a lower rate.
How do I negotiate lower auto insurance rates?
To negotiate lower auto insurance rates, be polite but firm when speaking with your insurance company. Be persistent in expressing your desire for a better rate, and consider researching scripts or tips online to maximize your negotiation efforts. Additionally, compare quotes from different insurance companies to gather information for negotiations.
What can I do if my car insurance company denies my request for lower rates?
If your car insurance company denies your request for lower rates, you can try different strategies. Research comparable auto insurance policies to ensure you are not already paying a competitive rate. Ask about other discounts, consider changing your policy, or inquire about bundling with other insurance policies to potentially secure a better deal.
Are there any tips for negotiating lower car insurance premiums?
Yes, here are some tips for negotiating lower car insurance premiums:
- Be polite but firm in your request.
- Be persistent and make a strong case for a better rate.
- Research scripts or tips online to guide your negotiation.
- Research comparable auto insurance policies.
- Ask about bundling or renewal discounts and other potential discounts.
- Consider adjusting your policy or raising your deductible.
- Shop around and compare quotes from different companies.
- Be prepared for rejection and, if needed, call back or try another agent.
Is it worth calling my car insurance provider to negotiate a lower rate?
Yes, it is worth calling your car insurance provider to negotiate a lower rate. Your chances of success may be higher if you have a long-standing relationship with the company or if you have multiple policies with them. Comparing quotes and being prepared for the negotiation process can increase your likelihood of securing a better deal.
Compare over 200 auto insurance companies at once!
Secured with SHA-256 Encryption
Tim Bain
Licensed Insurance Agent
Tim Bain is a licensed insurance agent with 23 years of experience helping people protect their families and businesses with the best insurance coverage to meet their needs. His insurance expertise has been featured in several publications, including Investopedia and eFinancial. He also does digital marking and analysis for KPS/3, a communications and marking firm located in Nevada.
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.