How To Negotiate Your Car Insurance Bill

Written By Mary Beth Eastman
Last updated April 28, 2020

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August 1, 2018

Simple. Thrifty. Living.

When you’re trying to cut costs, it makes sense to spend some time lowering the price of expensive items and services such as your rent, mortgage, and car insurance. Most people accept the quotes that car insurance companies give them. With a little effort, though, you may find that you can avoid some common mistakes and lower the amount of money that you spend on your car insurance policy.

The internet makes it easy for you to get quick quotes from car insurance companies. Unfortunately, you can’t negotiate with a website. Use the sites to gather preliminary information about policy options, coverage, and prices, but don’t rely on it solely. You’ll need to speak to a person on the phone before you can start negotiating for a lower price.

Insurance companies use numerous factors to determine their prices, so you should know all of the reasons that you deserve a lower price. Some things that could help you negotiate include:

  • A clean driving record.
  • Low crime rates in your neighborhood.
  • A good credit score that shows you’re responsible.
  • Lower quotes from other insurance companies.
  • Having a college education.

Always tell the truth during your negotiations. The company, after all, might ask you to send evidence of your claims. If you don’t have a college diploma or lower quotes from other companies, then don’t try to use those negotiating points. They could come back to hurt you.

Insurance companies don’t always advertise all of their discounts. When you call your agent, ask about discounts that you aren’t taking advantage of. You may find that you qualify for a price break.

Your agent may not want to read a list of every discount offered by the insurer, so you should know about some common discounts that will help you save money on car insurance. Ask your agent about:

  • Military discounts.
  • Discounts for people in your profession.
  • Bundling policies to get lower rates.
  • Driver education discounts.
  • Discounts from your employer or professional organization.
  • Discounts based on your vehicle’s safety features.

Negotiating with car insurance companies can help you save money. Remember, though, that you need to pay attention to more than your policy’s price. The cheapest option isn’t always the best choice. Before you purchase a policy, research the company to make sure it fulfills its obligations in a timely manner. Otherwise, you could get stuck with a policy from an insurance company that doesn’t pay you after you file a claim.

About the Author

Mary Beth Eastman

Mary Beth Eastman serves as the content manager for Simple. Thrifty. Living, where she is dedicated to helping readers use money and credit wisely. Mary Beth believes that access to the right financial information paired with a growth mindset are essential tools for getting out of debt and building wealth. Mary Beth has a degree in Journalism from Bowling Green State University and has focused her 20-year journalism career on putting readers front and center, carefully considering their concerns and presenting information that will help them in their everyday lives. She has won numerous statewide journalism awards. Her writing on personal finance as been featured on numerous websites in addition to Simple. Thrifty. Living, including Huffington Post and Lexington Law blog. Mary Beth resides in Pittsburgh, Pa., with her family and two rescue dogs.

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