Want to lower your current insurance rate or make sure you get the best possible deal on a new plan? Many insurance company reps simply don't volunteer information about available discounts that could help drivers save hundreds of dollars each year, so you have to make sure you ask the right questions to get the rate you deserve.
If you've had the same insurance plan for a while and are still paying the same monthly fee, don't be afraid to call up your insurance company and attempt to negotiate a lower rate. Too often, drivers never follow up with their insurance companies to find out if they've become eligible for rate deductions. But if you could start saving money today, why not?
IF YOU ALREADY HAVE INSURANCE
Before calling, consider if you should change your coverage (do you have too much or too little coverage currently?) and make sure you're informed about exactly what type of coverage you have and the price you’re paying. Once you know what coverage you have and the cost, compare rates with other insurance companies to find out if any offer lower rates. Then get on the phone with one of your reps and give these questions a go:
- Allstate (or whatever other company) quoted me at $$$ (a lower amount) for the same level of coverage. No question is really necessary following this statement. Your silence will prompt the representative to respond, but you may ask if they can beat the quoted rate.
- If I drive my car under a certain number of miles each year, do I qualify for a discount?
- Are there discounts for people who insure their house (or apartment) and car?
- When did I start my plan with you guys? Are there any discounts for renewing my insurance with you or discounts for being a long-term client?
- Do you offer rate reductions for individuals with jobs that put them at a lower risk for accidents?
- If my car has certain safety features, do I qualify for a discount? Having a car with new technologies like a rearview camera, blind spot monitoring and lane keep assist, or even features such as anti-lock brakes (ABS), may get you a discount.
- I work at EMPLOYER NAME. Are there discounts for drivers who work for my company? Many large businesses often have discounts on insurance. Additionally, if you're a member of Costco, AAA, AARP and other associations, you may qualify for a discount.
- Is there a discount if I pay for a year of insurance all at once (or quarterly)?
IF YOU'RE STARTING AN INSURANCE PLAN
Many of the same questions above still apply when it comes to discounts, but for someone getting insurance for the first time or shopping around for a new plan with a different company, there are a few other things to keep in mind.
The car you drive. Certain vehicles have lower insurance rates than others. Typically those with strong reputations for reliability and safety will cost less to insure, such as the Honda Odyssey minivan and Honda CR-V crossover, which were listed among the 10 cheapest cars to insure last year.
Opt out of unnecessary coverage. If you have a used car that's more than a few years old, it may not be worth it to have collision or comprehensive coverage. Instead, you can opt for liability only, which is especially smart if your vehicle is much older. Also, make sure to ask your rep about parts of coverage you're paying for that aren't required by law and ask if you can get a lower rate if you opt out of some of those areas of coverage.
Take a higher deductible. When you have a higher deductible, you'll pay less monthly. Just keep in mind that if you do get in an accident and it's your fault, you'll have to pay more out of pocket for any bills involved. But if you consider yourself a safe driver and have a good driving record, it may be worth choosing a high deductible to get those lower rates.
Comparison shop. Do your research to find a company with the cheapest rate for the coverage you want, then remember to grill them about available discounts. Also choose a reputable company; having cheaper insurance with a company that has a bad reputation may cost you more in the long run.
