5 Secrets to Negotiating a Better Car Insurance Premium

couple speaking with insurance agent

Everyone thinks they are paying too much for car insurance — but what if you could do something about it? 

So long as you pay your insurance from month to month, you can always change carriers or take out a new policy with the same carrier. This means you always have the potential to get a better plan in which you pay less for insurance. 

If you want to negotiate with your current carrier to get better rates, it can be a tricky business. Fortunately, we’ve got the secrets you need to start saving money every month! 

Insurance Rates vs. Premiums 

First, we need to address the elephant in the room, which is the difference between negotiating your insurance rates and negotiating your premium. 

Your insurance rates are determined by the state you live in. Strictly speaking, you can’t negotiate those rates down because the insurance carrier has no right to arbitrarily lower them. In fact, they could get into quite a bit of trouble offering significantly different rates to different customers. 

However, you can negotiate your premium, which is the monthly amount that you pay. With our tips below, you may be able to pay less for your premium than ever before. 

1. Lower Insurance Bill by Removing Unnecessary Coverage 

One of the easier ways to negotiate a better monthly premium is to remove unnecessary coverage. This is especially true when it comes to older vehicles. 

Left to their own devices, insurance carriers will often try to sell you as many insurance products as possible. In addition to the mandatory liability insurance most states require, carriers will try to sell collision insurance (to further protect your vehicle even if you are at fault while driving) and comprehensive insurance (to further protect your vehicle even when you aren’t behind the wheel). 

All of this insurance (collectively known as full coverage insurance) can help protect your vehicle and even replace it in the event of catastrophic damage. If your car is at least 10 years old, though, you could probably get by with only liability insurance. You don’t want your annual car insurance premium to cost more than your car is worth. And, if you get into a major accident, you are likely to buy a new vehicle anyway. 

2. Raise Your Auto Insurance Deductible for a Smaller Premium 

Most drivers want a lower deductible when purchasing insurance. Their logic is simple: In the event of an accident, they want to pay as little out of pocket as they can before their insurance takes care of the rest. 

However, low deductibles lead to higher insurance premiums. If you are a safe driver who rarely (if ever) gets into accidents, you may not need the low deductible. 

Raising your deductible can lower your monthly premium, and sometimes by a good bit. Just don’t forget to save some money so that you can pay for repairs in the event of an accident! 

3. Bundle Your Policies to Get a Multi-Policy Insurance Discount 

Do you have multiple insurance policies through the same carrier? For example, do you get homeowner’s insurance through the same company as your car insurance? In that case, one of the easiest ways to save money is by bundling your policies together. 

Most of the time, your insurance carrier is willing to give you a discount for having multiple policies with them. They see this discount as a small cost to pay for keeping you as a customer, and customers getting discounts are likelier to stick around. 

In terms of saving on your premium, a bundle is one of your best options. That’s because you’ll still be getting the coverage you had before, but now it won’t cost as much as it once did. 

insurance agent going over options with customer

4. Ask About Car Insurance Discounts 

Saving money on your car insurance premium can be as simple as asking. So if you haven’t done so already, you need to talk with your carrier about potential car insurance discounts

Carriers offer discounts for a wide variety of things. There are discounts for safe driving and discounts for limited driving. There are also discounts for completing driving safety courses, installing anti-theft devices, and so much more. 

It may take a little time or effort to qualify for some discounts (such as installing anti-theft devices). In some cases, you may already qualify for a discount and not know it. And once the discount is live, you will save money on your premium each month. 

5. Repair and Boost Your Credit Score to Pay Less in Insurance Costs 

Insurance carriers look at a variety of different factors when setting your insurance premium. Some of them are things you can’t easily control, including your age and where you live. Some states are allowed to use your credit score to determine insurance costs, and that is something you can control. 

The best way to take control of your credit is to sign up for a credit monitoring service. Such a service helps you stay on top of changes to your credit and review the different factors dragging your score down. If you encounter any inaccuracies on your credit report, you may be able to dispute them for an instant bump on your score. 

Once you have a lower score, you’ll be in a better position to negotiate a lower car insurance premium. As an added bonus, you’ll likely get better rates for things like car loans and even home loans once your credit is improved. 

Get the Best Car Insurance Premium Today! 

All of our tips above can be helpful in negotiating a better insurance premium through your carrier. However, if you really want to save money, it’s important to discover what other car insurance companies have to offer. By comparing rates every so often, you may find better coverage at a more affordable price. 

And that’s something we specialize in here at InsureOne. We are always ready for you to get a quote online. Alternatively, you can pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come into one of our convenient nearby offices