How to Negotiate the Best Car Insurance Rates

Negotiating car insurance rates at one time was a mystery. Not only did you not question the rate that your insurance agent quote to you, but you accepted it with a smile on your face because you knew that at some point, you might need to use that insurance, and you wanted as little trouble as you could manage if that eventuality came to be. Thankfully, those days are long since gone, and we as consumers have been empowered not only to question our insurance agents about specifics of coverage, but also to negotiate the best possible rate for that insurance product.

So, just who is it that can negotiate with an insurance agent for the best insurance rate? The truth is that anyone can do it, from a 16-year old new driver to a head of household carrying multiple insurance products. All you have to have is knowledge of what your insurance rates should be, the specific coverage you want and need, and also that there are more than just a few insurance companies that can fill your insurance needs.

Begin your negotiation by doing your homework. Go on the internet and get quotes from all the leading insurance companies for the product you want to purchase. For instance, if you need to get auto insurance, you should compare the proverbial "apples to apples" by selecting the same coverage and options from each of the insurance companies you decide to talk to. Regardless of who you are, you'll get an astounding difference of rates from which to choose. Should you take the lowest rate, though?

The answer to that is complicated, but to simplify, that isn't always the case. Sometimes, major insurance companies can be difficult to work with, particularly with certain insurance products and clients. This is why you have to cross-reference the companies on the lower end of your price spectrum with current consumer satisfaction surveys from companies such as Consumer Reports or J.D. Power. These unbiased companies look at the conglomerated data submitted by consumers with firsthand experience with those specific companies and turn that into an aggregated score. Finding the insurance company with the highest relative consumer satisfaction score and the lowest insurance premium is the obvious choice to take your negotations to the level of speaking with an agent.

Call the insurance company, and try to speak to a live agent. Many companies will allow you to purchase insurance products online or over the phone without human interaction, but this won't allow you to negotiate your rate. Speaking to a person will allow you to add the necessary additional points to your purchase that could result in a lower insurance rate. Since many insurance companies use different websites and locations to disperse different insurance products, you may have to visit several insurance websites within the same company if you want to avoid talking to someone. Talking to an agent makes the process much, much easier.

When purchasing one insurance product, check to make certain that you don't need additional insurance products. While many new drivers may only need car insurance, as you get older and begin to shoulder additional responsibilities, you'll want to obtain additional insurance products such as home or renter's insurance, life insurance or recreational vehicle insurance. Putting all of these insurance policies under a single umbrella policy will result in a lower premium because of what is called multiple-line insurance discounts. By bunching all you insurance products into one company, they will be likely to give this discount, which can add up to many hundreds of dollars per year depending on what your insurance needs are. If you are a new driver who lives at home, you may still be able to negotiate for this discount if you consider purchasing a life insurance policy as well. If you've never considered a life insurance policy, you would be wise to do so at a young age, as when you grow older, health concerns can significantly increase your premium, making affordable life insurance very difficult to obtain.

When negotiating for your insurance needs, bear these things in mind, and also keep in mind that if a particular insurance company won't lower their premiums, you can always take your business elsewhere. In many cases, other companies will be thrilled to earn your business at the expense of a company that didn't have the time, or the inclination, to lower their premium to earn your business.

Sources:
J.D. Power.com: Insurance Ratings; http://www.jdpower.com/insurance
Motorology.com: Strategies for Negotiating Lower Auto Insurance Rates; http://www.motorlogy.com/strategies-for-negotiating-lower-auto-insurance-rates-849/