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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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years

UPDATED: May 2, 2021

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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.

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.

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.

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