How to Negotiate a Cheap Auto Insurance Rate

Negotiating a lower auto insurance rate requires some skill and research. The easiest way to get cheaper auto insurance is by having multiple insurance companies compete against each other. Offering to move health and life insurance policies over to the auto insurer is another way to obtain a cheaper rate. Combining both of these strategies is the best way to drive down the price of auto insurance.

1. Contact an auto insurance agent and obtain a quote for the type of vehicle you want to insure. Ask the agent what the price is for different deductible levels. A higher deductible will result in a lower overall auto insurance policy cost. Do not select a deductible that is higher than your preference unless the policy premium is low enough to justify the high deductible.


2. Write down the different insurance quotes you receive and then tell the agent you will be back in touch later in the day. Repeat Step 1 with a second and then third auto insurance agent. Compare all of the costs you receive from the three agents and then call the lowest of the insurers back.


3. Ask the agent if you will receive a cheaper auto insurance rate by moving your health and life insurance policies over to the company. The agent may offer a discount for multiple policies. If this is not an option, tell the agent that you have been in touch with other auto insurers and want to know if there is any room to lower the insurance quote. The agent may then offer you a better rate once you reveal that you are shopping around with different companies.


4. If you are not able to secure a lower insurance rate, tell the agent you will call back after finalizing your choice. Call the next lowest insurer and see if you can negotiate a lower rate by repeating Step 3. Call the third agent if you are still unable to negotiate a lower rate.


5. If the lowest agent you contacted first is still offering the best deal, call back and try one last time to get a better rate. The agent may drop your rate since you made them wait. Finalize the paperwork if you are satisfied that you can do no better than the offer that is on the table.