Can you negotiate car insurance rates?

If you ask, “Can I negotiate my car insurance rate?” The short answer is no. You can’t negotiate car insurance to get a cheaper rate, but there are other ways you can find savings to make car insurance more affordable. For example, you can negotiate a car insurance payout if you feel the amount offered is too low for your car’s value or damage.

Continue reading to learn more about why you can’t negotiate car insurance rates with the provider and how to find cheap auto insurance without negotiating.

Can you negotiate your car insurance rates?

Can I challenge my rate for car insurance? Car insurance companies’ rates are regulated by states, meaning the rates you get are already set. Therefore, you can’t negotiate car insurance, and car insurance companies can’t change their set rates without fines from the state and potential loss of license.  

However, this doesn’t mean you have to settle for an expensive insurance rate. There are plenty of ways to lower your car insurance, which we will cover in the next section. Just because you can’t negotiate doesn’t mean you can’t get cheaper rates. 

How to Get a Lower Insurance Rate  

If you are looking to lower your auto insurance rates, there are plenty of tips and tricks to save money. See our top tips below for reducing auto insurance rates. 

Apply for More Discounts 

There may be auto insurance discounts available at your insurance company that aren’t applied to your rates because you need to apply for them. For example, there may be a defensive driving discount where you have to show a certificate of completion to get the discount. 

Buy Vehicles That Are Cheap to Repair

Insurance rates often give cheaper rates to cars that are mass manufactured and cheaper. This means that repair parts will be easy to find and less expensive for these common cars. 

Buy Vehicles That Have Good Safety Features and Safety Ratings 

Insurance rates are often cheaper for cars with both features that help drivers avoid crashes and features that help protect drivers in crashes, reducing the risk of serious crashes and injuries. 

Buy More Than One Type of Insurance at the Same Company

You can usually save money by bundling insurance policies if you buy more than one type of insurance from a company. For example, you could get home and auto insurance from the same company. 

Get Multiple Quotes

Every year or so, you should get free auto insurance quotes from a few different companies. This will ensure you are getting the cheapest rate possible for your car insurance. 

Improve Your Credit Score 

If your insurance company uses credit score as a rate factor, improving your credit score can help bring down your auto insurance rates at your next renewal period. 

Lower Your Coverage

You can consider carrying just liability auto insurance if you have an older car with little market value. Additionally, you can get rid of optional coverages like roadside assistance to bring rates down. 

Raise Your Insurance Deductible

You can always increase your car insurance deductible to reduce your rates, which is the amount you’ll pay out of pocket towards repairs after an accident. Just don’t raise it too high beyond what you can afford. 

Following the tips above can help you find savings. In addition, a clean driving record also reduces your auto insurance rates over time. This is because any at-fault accidents, traffic tickets, or DUIs will increase your rates for years after the incident. 

How to Negotiate Car Insurance After an Accident 

You can’t negotiate for cheaper rates after an accident, but you can negotiate your car insurance payout on a covered claim if you feel the amount is unfair. However, you will need proof that the amount is too low, and you can’t accept the payout from the insurance company and then dispute it later. 

The best place to start with disputing the payout is to get repair quotes from different auto repair shops. If your car is totaled, you should get comparable prices of similar cars from places like the Kelley Blue Book to show that the payout is less than your car’s current value. 

When contesting the payout, ensure you know beforehand the minimum number you’ll accept for your claim. Also, keep in mind that the insurance company may refuse to give you a higher amount for several valid reasons, such as if you have a low coverage limit or were partly at fault for the accident. 

If you are having trouble contesting the claim on your own, you can always seek a lawyer’s advice to see if you have a valid platform to stand on. However, this is a more expensive option, as you will have to pay more for the legal advice if you have them counteroffer on your behalf. 

The Final Word on Negotiating Car Insurance Rates 

There are no instructions on how to negotiate car insurance rates because insurance companies aren’t allowed to change their rates without permission from the state. So while you can try to negotiate car insurance payouts on covered claims, you can’t negotiate your rates. 

However, this doesn’t mean you can’t save on your car insurance rates. There are plenty of ways to reduce your costs, with shopping around for quotes being one of the best ways to save. If you want to jump right into finding car insurance savings, use our free quote comparison tool to find the best rates in your area.