Many motorists today know they need to do something about higher renewal premiums but don’t know what. Haggling for better prices is a skill that the new generation didn’t learn from their parents. There was a time it was part and parcel of a transaction. It was a pre-sale dance you had to have. It is definitely not something that should be frowned upon and it certainly works to get cheap car insurance rates all day long, providing you know the rules.
Rules of Negotiations
One of the first rules is not to let them sense that you desperately want whatever they are selling. The second rule is to pretend that you will walk out the door in a minute if you don’t get your way. Also, you need to be prepared to walk out, even if it means coming back later and paying the price they were asking for.
Negotiating Vehicle Insurance Prices
It is a process of making sure that they have considered everything before they offered you the rock bottom price. There are many reasons why they could reduce their prices a bit and you need to point that out to them. If everything fails, you just tell them that you are struggling to pay it and is there a way they could reduce it a bit. This usually works and you could at least walk away with a 5% discount.
Suppose you got your renewal notice and it is a bit high but you don’t want to switch for whatever reason. Then, you could call your current provider and tell them just that. Often, they offer a small discount to keep the business. If they don’t, offer to commit there and then if they could give you a discount. If it doesn’t work, ask if they would shave a bit off the top if you settle the full amount right now.
To play the next hand you need to know your yearly mileage. If it is lower than the US average of 12,000 you may suggest that you drive less and ask if they offer a discount for it. If you drive less than 7,000 miles and you didn’t tell them you have a pretty good reason for asking for a decent saving. The less you drive the less likely that you will get into an accident.
Your last card is deductible if the price is still high. Check the current amounts and ask if the cost would go down sufficient enough if you increase deductibles. Increasing them for $200 would reduce the premium about that much you are in business, especially if you are a good driver with no recent claim history. Even if you have one claim you have already covered the increased amount with the savings. Of course, you would win if you don’t make any claim but lose if you make two.
What If All Fails and They Don’t Budge?
Then you will have to get a cup of coffee and start getting automobile insurance quotes online because your only option to save money is to switch. There are plenty of other companies and various smart solutions to help you out. For example, you could look into pay per mile policies. If you try hard enough you will increase your chances of cutting the rates. So, don’t give up after the first or second quote.