How to negotiate lower car insurance rates

A woman holding up the keys to her car, smiling, sitting in a convertible.

Once the excitement dies down from your new car purchase, you’re going to have to start thinking about car insurance. Some people just take whatever is offered, but they end up paying more than needed. Don't be one of them; find lower car insurance rates. Haven't you already spent enough money on the vehicle itself?

Here are some tips for negotiating lower car insurance rates.

Bundle your insurance

Do you already have home insurance or insurance for anything else? You can save money by bundling your insurance plans together to have everything under one policy. The benefit of this is that you can also build a relationship with one company, and hopefully, obtain a discount.

You can also ask your current insurance provider for any possible discounts that exist. You can get a discount for loyalty, or if you add a new coverage to an existing plan, because the company wants all your business. It never hurts to ask for a discount, and bundling gives you leverage when doing so.

Look into the amount of coverage that you actually need

How much coverage do you really need? There’s no actual rule here and any advice is opinion rather than fact, though admittedly, some advice is more accurate than other. You have to look into what each policy offers and what comes with a specific coverage plan. You may not need the most sophisticated package with your first car.

Increase your deductible

Your deductible is the amount of money that you pay out of your own pocket when you make a claim. If you raise your deductible from $500 to $1,000 or higher, you can save money on premiums. The downside is that you spend more money whenever you have to make a claim. This really depends on what you’re comfortable are and how your finances look.

Shop around until you find the best deal

Too many of us settle for the most convenient option or the first company we contact. It’s critical that you shop around and get as many quotes as possible when looking for an insurance rate. It may take you an entire evening, but you’re going to save money if you put in the time. The best part is that you can now easily find insurance quotes online by simply filling out a few forms.

So while you may have to shop around and do some research, it’s possible to save money on car insurance. Over the life of your vehicle, the savings can be quite significant.

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