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Saturday, May 25, 2024

Is It Possible to Negotiate Your Car Insurance Policy?

So you want to save on car insurance. You don’t want to go with just any cheap car insurance company to provide you with a policy for fear that you won’t be fully covered should something happen to you or your vehicle on the road.

Perhaps your next thought is to try and negotiate with one of the more reputable insurance providers to help reduce costs while getting all of the coverage you really need to stay protected out there. Unfortunately, this just isn’t possible.

It’s not that these car insurance companies aren’t in the haggling business, they are completely unable to allow for negotiation under state law. The car insurance industry is heavily regulated by state agencies and the premiums that policyholders must pay are established as per state law.

Think of it like dealing with the gas company, you can’t just simply negotiate a lower price for your gas because you don’t want to pay more. It’s the same with your car insurance policy. Negotiating isn’t possible for getting a lower rate on coverage.

What you can do, however, is shop around and get quotes from all of the major car insurance providers out there in the marketplace. There is certainly no shortage of potential suitors to consider and, believe me, they all want your business. It’s a competitive industry and while every driver must own car insurance in order to legally drive on the nation’s roads, the insurance companies are willing to work with you on making coverage more affordable for your budget.

But there are some things to keep in mind for helping you save the most money. Here are just a few of the ways you can find the best rates and keep more cash in your pocket.

Compare Rates Periodically

Whether you do this every six months or once a year, you can save money by electing to shop around on a regular basis. You’re not bound to work with just one insurance provider forever, you can switch companies pretty much any time you feel like it.

There is one caveat to keep in mind. You would need to read through the fine print of your policy so as to ensure that you aren’t incurring penalty fees and other costs if you cancel at the wrong time during coverage. Most companies won’t charge you a fee for a cancellation except under specific circumstances that should be described in your policy’s fine print.

Should you elect to cancel and switch to another company, you can expect your current provider to offer to match any competing price you may have found. At this point, it’s up to you to decide if you are satisfied with your current coverage and simply want a better rate or if your new provider offers a lot more than a reduced cost in the form of better customer service and faster claims processing.

Filing Your Claim

You can save money on car insurance by not filing a claim. Sounds pretty silly, refusing to receive a service for which you are paying no small cost each and every month only to save money on that service that you must own by law.

But, unfortunately, it’s true. Car insurance can be very helpful in some situations but it can also be a mistake to file a claim for something that you can probably pay for out of pocket instead. You may think that defeats the purpose but it’s just the way it is. When you file a claim with your insurance company, for whatever reason, your premiums are likely going to increase. So, a good way to avoid that from happening is by not using the coverage unless you absolutely must.

You don’t want your rates to go up, so if there is a problem that you can manage to pay for yourself, it’s going to help you save money in the long run. That’s because your insurance company could increase your premium for as many as three or more years before your rates drop down again.

So, think before you file that claim, it could be the thing that prevents your premiums from skyrocketing.

Drive Less

Here’s the bottom line, the less time your car spends on the road, the less likely it is to be involved in an accident. Insurance companies are all about the assessment of risk, if you represent a higher risk to the company, you’re going to pay more to get coverage. So, if you drive less often, that means your premiums will stay low.


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