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April 5, 2018

Can You Negotiate For Better Car Insurance Rates?


As you research the best car insurance companies, you'll find a variety of different rates and coverages. Sometimes, these rates are negotiable. Other times, you’re better off doing your own research and getting a policy with cheaper insurance rates.

Learn some negotiation strategies. You'll not only receive the best coverage, but the best price as well.

Know Yourself

Know exactly what you need out of your insurance coverage. By understanding what you need, you can then refuse to pay for expensive policies that provide you with extraneous services. Find out if you qualify for any discounts - for example, your teenager gets good grades - or if you’re considered a larger liability from past accidents, tickets, or live in an area with a large number of uninsured drivers.

As you determine what you need, check your state's minimum requirements so you don’t leave anything out. Most states require liability insurance. If you leasing or get financing on your car, check your bank or dealership requirements as well.

Ask Questions

Ask questions about anything that you aren’t 100 percent sure of. This allows you to get a full understanding of what the policy has to offer. If the agent doesn't provide an adequate explanation, consider it a red flag. Don’t accept everything that an insurance agent tells you upfront. Learn more from different insurance companies. It gives you greater leverage when negotiating for better policy rates.

Perform Routine Check-Ups

Routine check-ups aren’t just for your car, but for your insurance company and your specific policy, too. You will want to check your bill for any added hidden fees or increases in your rates. Some insurance companies offer a promotional rate for new customers, then raise that rate after a certain period of time. Routine updates ensure you receive the best rate, rather than one that was set up to attract you to the company.

Shop Around

Get a variety of quotes and compare your policy options. Options will give you a high degree of leverage to negotiate with each insurance agent. In addition to negotiating power, you may find that you're more satisfied with another insurance company during the process. If you're not satisfied by the rates that an agent gives you, feel free to walk away from the deal. As stated before, insurance rates are always changing and you may be able to secure a lower rate at a later date.

If, after negotiating to the best of your ability, you cannot receive better rates, then walk away. There are plenty of insurance companies with a wide variety of coverage options that should meet your needs.

Courtesy of Allyson Brooks for Benzinga

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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Item Reviewed: Can You Negotiate For Better Car Insurance Rates? Rating: 5 Reviewed By: Econ Matters