How to Negotiate Your Car Insurance Rates

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Car insurance is a mandatory service which is generally quite affordable. However, given the present economy, most people are struggling with their expenses and are looking for ways to save money. In most cases, this means that you have to make some lifestyle sacrifices. Few people are aware of the fact that due to the very competitive market, most companies are willing to negotiate their prices. Believe it or not, you can even negotiate with your agency in order to lower your car insurance rates.

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Do your research
The most important element of the negotiation project is information. A client who is very well informed will never be taken by surprise by an agent in a discussion. The first thing that you need to do is learn the clauses and prices in your insurance company. See how much you are paying for each type of coverage and what could you spare. If you have a very old car you might want to give up the collision coverage. Furthermore you need to find some websites that offer comparative car insurance quotes. Find the cheapest quotes and write them down in order to to use them in the negotiation.

How to negotiate
There are several negotiation strategies that you can use in order to lower your rates. You can start by calling your auto insurance agency in order to inform them that you are thinking to look for another company as you are no longer satisfied with their prices. This is usually enough motivation for the insurance agency to offer to lower your car insurance rates. However, if they make no propositions you can inform them that certain companies have already approached you and that they offered cheaper rates. Now is the moment to throw in the discussion those comparative quotes that you found online. It is important to always keep a polite tone. If you get angry and you start threatening them you are unlikely to get a discount any time soon.

Clever questions
In order to encourage the insurance agency to make you a better deal you need to ask some questions in order to show them that you are very well informed of their services. For starters you should ask how much you could save by buying other policies from them. For example aside from your car, you could also insure your home with the same company. You should also ask for renewal discounts and remind the agency that you have been a loyal customer for a while now. There are certain car insurance companies that offer discounts for people who are willing to pay an year’s rates up front. Another thing that you can do is ask for a revaluation on your car. Mention that certain companies offer discounts for features like anti-lock brakes. Other discounts that you could ask about in order to lower your car insurance rates are the for low-mileage, defensive driving courses, employer discounts, senior discounts and so on.