Car insurance is a necessity if you own a vehicle. Insuring your car is required by law in every state. Plus, your policy offers you some financial protection if you end up in an accident, your vehicle is stolen, or other specific incidents occur.
Generally speaking, car insurance is often expensive. Ensuring you get the best possible rates – and all of the discounts you’re eligible for – is essential to make the cost manageable. If you’re curious about how to get the best price and find all of the discounts you can get on car insurance quotes, here’s what you need to know.
Is It Possible to Negotiate Car Insurance Quotes?
First, it’s critical to understand that negotiating car insurance quotes isn’t typically an option. The prices are determined by algorithms that insurers use to estimate the risk associated with issuing your policy. Some algorithms are simply calculations using set proprietary formulas. Others take advantage of artificial intelligence and machine learning technology to assign risk levels and choose prices for premiums.
The results of any calculations and assessments aren’t up for negotiation. As a result, the price associated with your risk level is generally set in stone in the eyes of the insurer.
What Else Can You Do to Lower the Rate?
There are several things a person can do to get a lower car insurance rate. One of the most straightforward options is to adjust the coverage levels and maximum payouts on the policy. By modifying your policy to cover only what’s mandated by state law, you’ll secure the lowest possible quote for your coverage.
Another option is to choose a higher deductible. The deductible is the amount you’re required to pay out of pocket after a qualifying incident. Since higher deductibles mean the insurer pays out less when you file a claim, the policy typically comes with lower premiums.
However, going with bare-bones insurance or higher deductibles comes with risks. They both increase your odds of having higher out-of-pocket costs when you file claims. As a result, it’s often best to look for car insurance discounts that can lower the premiums, making stronger coverage and manageable deductibles practical options.
Common Types of Discounts
Auto insurers often have a wide array of discounts available that can lower the cost of vehicle insurance premiums. While not all companies offer the same ones, certain price reductions are relatively common in the industry.
Here is a list of 15 common types of car insurance discounts:
- Multi-Policy
- Multi-Vehicle
- Vehicle Safety Equipment
- New Car
- Anti-Theft Device
- Good Driver
- Defensive Driver Course
- Good Student
- Pay-in-Full
- Autopay
- Paperless Statements
- Online Quote and Purchase
- Military or Government Employee
- Low Usage or Low Annual Mileage
- Loyalty or Long-Time Customer
Generally speaking, most of the discounts are automatically applied to a policy as long as you provide accurate information when requesting a quote. For example, multi-policy, multi-vehicle, and discounts relating to your car’s features and age are factored in without you taking additional action. Autopay and paperless statement discounts are included as soon as you select those options.
However, defensive driver, good student, and occupation-related discounts may require additional steps. For example, you might need to provide a copy of a defensive driver course completion certificate, a student transcript, or proof of employment documentation, respectively, to obtain these discounts.
When you request a quote, make sure to ask about any available discounts directly. Then, if there’s one you missed, you can ask the insurer to apply it. The insurance company will let you know if providing supporting documentation is required, allowing you to determine what you need and send it in promptly to ensure you get the best price.
