Can You Negotiate Your Car Insurance? Here's What to Do

Due to state regulatory laws and fixed pricing models, car insurance base rates aren't negotiable. Insurance companies must submit their rating plans to state insurance departments for review and approval. Once approved, they can't deviate from these rates, which can result in substantial fines or even loss of their license to sell insurance.

Some ways to work with your provider to make your car insurance cheaper include strategic policy modifications, qualifying for discounts and comparison shopping. While you can't haggle for a better base rate like you would when buying a car, most consumers can save 10% to 30% through the combination of tactics outlined in this guide, including correctly reporting mileage, adjusting deductibles, asking for discounts and using communication strategies when speaking with insurers.

You can't negotiate base rates, but conversations with your insurer can maximize savings through policy adjustments and discounts that may not be advertised.

Ask for the retention department directly

• These representatives typically have more authority to offer discounts.
• Say: "I'd like to speak with someone in the retention department about my policy options."

Use effective talking points

• "I've received quotes from [competitor] for less for the same coverage. What can you do to help me stay with your company?"
• "I've been a customer for years with no claims. Are there any loyalty discounts available?"
• "What discounts do you offer that I'm not currently receiving?"

Ask about often-overlooked discounts

• "Do you offer any low-mileage discounts?"
• "What discounts do you offer for paperless billing and automatic and annual payments?"
• "Are there any defensive driving courses I could take for a discount?"

Be polite but persistent

• Remain courteous while being firm about your need for better rates.
• If one representative isn't helpful, thank them and call back later to speak with someone else. Be prepared to make three to five calls if necessary.

While you can't negotiate the base insurance rates with an insurance company, you can make a deal with an agent or broker. When negotiating with an agent, focus on asking about additional discount opportunities, special programs, coverage restructuring or whether they have any discretionary credits they could apply to your situation, rather than asking for a reduction in the base rate.

Agent Flexibility vs. Direct Company Limitations

• Commission adjustments: Agents often can reduce their commission to lower your cost and retain you.
• Special discounts: Agents can often apply discounts that aren't automatically included.
• Smarter policy structure: Agents can reorganize your coverage and bundle to lower costs and maintain protection.
• Multiple companies: Independent agents work with many insurance companies and can match you with the best price.

Make your total car insurance cost cheaper through policy changes, driver profile updates and by adding discounts to your policy.  Below are ways to reduce your insurance cost:

Adding auto insurance discounts to your policy is a good way to get better car insurance rates. Search for discounts beyond what car insurers advertise on their websites. It's most effective to ask an insurer about the discounts it offers and how to qualify for them.

Comparing car insurance rates is different from negotiating with your current insurer. When other strategies above don't help, comparing rates across multiple insurers can get you the biggest savings. Insurance pricing varies a lot between companies, even for identical coverage.

Best Comparison Approach

1. Compare rates every six to 12 months, and always at renewal time.
2. Get three to five quotes from different insurers for identical coverage.

When Should You Compare Rates?

Shopping becomes more important after:

• Major life changes (marriage, divorce, moving, adding teen drivers)
• Credit score improvements
• Clean driving record achievements (3+ years accident-free)
• Rate increases from your current insurer

Information to prepare

• Driver information (license numbers, birthdays) for all drivers
• Vehicle information (VINs, safety features)
• Current policy declarations page
• Driving history (tickets, violations, accidents in the past five years)
• Exact coverage types and limits you want

Common Mistakes to Avoid

• Focusing solely on price without considering coverage differences
• Getting too few quotes (aim for three to five)
• Waiting until the last minute before your current policy expires
• Failing to ask each insurer about all available discounts

Many people wonder if car insurance is negotiable. MoneyGeek gathered the most commonly asked questions and answers about car insurance rates to help you navigate the best deals.