Are Car Insurance Rates Negotiable?

Are your car insurance rates negotiable?

Car insurance rates can be affected by a myriad of factors. The price you end up paying at the end of the month or year can vary widely, and new and old drivers are often confused about whether these rates are negotiable. Their car is one of the most expensive things they own, and as such, they want to make sure that it’s protected at a reasonable price.

Car insurance rates vary wildly due to the factors companies use to consider the risk you pose as a driver. They consider your age, gender, location, type of vehicle, credit score, and more. Along with each insurance company’s calculation, state laws come into play as well.

Can I Negotiate My Car Insurance Rates?

To put it simply, no you can’t negotiate the rates. But this doesn’t mean that all hope is lost! What you can do is take matters into your own hands by shopping around to compare rates.

You can also make changes to your driving behavior and take advantage of discounts that insurance companies offer. For example, many companies offer discounts to customers who bundle multiple policies or have taken a defensive driving course recently. There are a lot of things you can do to lower your rates — you just have to know where to look!

Luckily, Compare.com is here to show you the best deals that take advantage of any discount you’re eligible for. Just enter your ZIP code below and be well on your way to finding your best rate.

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Tips For Lowering Your Car Insurance Rates

If you feel that you’re paying too much for your car insurance, here are a few tips to lower car insurance expenses that any owner can do.

  1. Compare insurance costs every six months. While you can’t negotiate your car insurance rate, nothing is holding you back from leaving if you find a better policy. Contrary to popular belief, you can switch at any time, whether you’ve been with your current company for two weeks or 20 years. Take time every six months to evaluate your current rate and compare it with other insurance providers. If you find that another company has a cheaper rate, you can switch. But before you make a move to cancel your insurance, be sure to read over the fine print of your policy to see what, if any, fees you may incur for canceling your policy. If you haven’t reached the six months mark, but you’ve had a huge life change, don’t hesitate to update your insurance company. A move or marriage could affect your rates for the better.
  2. Bundle home and auto insurance. Most people will purchase separate insurance types for their possessions. What they don’t know is that choosing to bundle your home and auto insurance can result in unexpected savings for thousands of homeowners and renters. When bundling, check the companies reviews to see what customers have to say about their policies and coverage. Look at their coverage limits, deductibles, and any special offers they give their customers.
  3. Take advantage of the discounts. Take full advantage of any discounts offered to you by your car insurance company. At times, these discounts won’t be obvious, but it never hurts to ask for them. The worst they can say is no, and you can start looking elsewhere. Some companies offer discounted car insurance rates when the policyholder hasn’t had any accidents or violations for several years. Discounts are also offered for drivers who decide to take defensive driving courses. One way to qualify for discounts is to call your current car insurance and ask them to look over your policy to see if there are any missed discounts.
  4. Compare insurance costs when buying a new car. Are you planning on buying a new car at the turn of the season? Then it’s a perfect time to compare car insurance rates. Your car insurance premium will factor in the new car’s price, repair costs, and the likelihood of theft when calculating your rate. If your car comes chock full of safety features, your premium will likely be lower. If your new car is on the “Most Likely To Be Car-Jacked” list of 2020, you’ll probably pay a lot more.
  5. Opt for a higher deductible. Imagine you’re in an accident with another vehicle. Your deductible is the amount of money you’re required to pay out of pocket before your insurance kicks in. While a lower deductible means that you pay less money when filing a claim, it’s not always the best course of action. Relatively safe drivers and drivers with older cars should consider raising their deductibles. It could save you some serious cash.
  6. Accurately value your vehicle. If you’re leasing or financing a vehicle, you’ll need comprehensive and collision coverage to ensure that you’re fully protected. However, if your vehicle is old and not worth much, you may find that you’re paying for coverage you could do without. To avoid overpaying, find out the true value of your car through Kelley Blue Book or NADA. If you choose to go this route, don’t skimp on necessary coverage to save a few dollars. Consider keeping property damage and uninsured motorist bodily injury coverage. This way, if you’re involved in a collision with a driver without insurance, you’ll still be covered.
  7. Be selective when filing claims: It’s important to remember the effect that filing a claim will have on your insurance premium. The more claims you file, the higher your car insurance will be. If you can afford to cover the out of pocket costs yourself, it may be better to skip filing a claim. If you file an at-fault claim, insurance companies can charge you extra for up to three years.

Car Insurance Comparison Made Easy

At the end of the day, each driver needs to decide for themselves what auto insurance company will work best for them. What may be a great deal for one driver could turn into a nightmare for another.

To make sure you’re getting the best deal possible for your car insurance rate, visit us at Compare.com to get a clear overview of car insurance options. You can compare your coverage, rates, and discounts without feeling pressured to make any decisions. Once you have an idea of the best rates in your area you can purchase the best policy for your family, confident that you’ve made the right choice.

To learn more about comparing car insurance rates, visit Compare.com. And the best part? You can find your best rate in just a few minutes by entering your ZIP code below.

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