Can negotiation lower car insurance rates? The good news is yes, it can. Many who’ve done it are saving as much as $100 a month.
Check Your Current Coverage
If you don’t know what you already have, you won’t know what you don’t need. Your current policy can give you this information, but if it isn’t handy, you can speak to your insurance agent or check the company’s website.
Once you’ve familiarized yourself with charges for your current coverage and determined what you can do without, it’s time to see what other companies have to offer. After doing some initial research on line, call each company of choice in turn and speak with a representative. Describe the amount of coverage you want and reveal the lowest rate you’ve found so far. Listen to what they have to say and then start asking questions.
In particular, you’ll need to know about possible discounts for:
- Long-term memberships.
- Low-mileage drivers.
- Policy renewals.
- Defensive driving credits.
- Positive safety records.
Many companies offer additional discounts for things like insuring the house as well as the car. You may not know unless you ask.
Think Twice About Roadside Assistance
If the insurance company in question offers it, you must learn whether roadside assistance carries an additional charge. For AAA members and individuals whose credit card perks include it, this could prove an unnecessary expense.
While the figures may sound impressive, they come with associated risks. There is danger for those who might find themselves in a bind and unable to make that initial out-of-pocket payment.
Know That Cheapest Is Not Always Best
While the attraction is understandable, choosing the company with the lowest rates may not be the best idea. The presumed benefits could look a lot less rosy for those claimants who learn too late that the expected disbursement will not be forthcoming. You can avoid these hassles by dealing only with a company that you know to be reputable. A careful check of reviews and references can keep you from ending up behind the eight ball.
Give the Process Some Thought
While it is always possible to negotiate a lower cost on car insurance, the decision to do so must always rest with the individual. While substantial monthly savings are achievable, the danger of coming up short or finding oneself unable to meet the deductible can argue against it. However, for those who feel it worth the trouble, the resulting month-to-month savings can add up considerably when calculated from year to year.