Negotiating Power: Strategies For Requesting Lower Insurance Premiums

There are many ways to ask your insurance provider to lower your bill. Firstly, it is important to understand your insurance coverage. Log in to your insurer's website and check your plan details to see what your insurance covers and what you are responsible for paying. You can also check your Explanation of Benefits (EOB) to see what your insurer has covered in the past. If you notice any discrepancies or have questions about your coverage, contact your insurer for clarification.

Another way to lower your bill is to identify billing errors. Billing errors are common and can significantly reduce your bill. Some common errors to look out for include duplicate charges, incorrect patient information, incorrect codes, and unbundling of charges. If you find any errors, document them and contact your provider's billing department to have them corrected.

You can also ask about any financial assistance programs your insurance provider may offer. Many hospitals and health systems are required by law to offer financial assistance to patients who cannot afford their medical bills, as long as the service is considered medically necessary.

Additionally, you can research the insured rate for the services you have received. Sometimes healthcare providers will charge uninsured patients more than insured patients for the same service. However, you can negotiate with the hospital billing department to honour the insured rate.

Finally, you can request or negotiate a payment plan. Many healthcare providers are willing to work out a plan that fits your budget. Offering to pay a discounted bill upfront may also help you reduce your bill.

Compare prices among insurers

Comparing prices among insurers is one of the best ways to lower your insurance costs. Here are some tips to help you compare prices and find the best deal:

Shop around for a lower rate

Prices vary from company to company, so it's worth shopping around to find the best deal. Get at least three price quotes and compare them. You can do this by contacting companies directly, through their websites or over the phone, or by using an independent insurance agent or broker who can provide options from multiple insurers. You can also use an insurance comparison website, but be aware that some sites are just lead-generation websites that sell your personal information. True comparison sites partner with insurance companies to provide real-time quotes.

Compare prices regularly

Don't just compare prices when you're taking out a new policy. To maximise your savings, you should compare prices every 6-12 months, when your policy is up for renewal. This is because insurance companies treat the factors that go into your rate differently, so you might find a better deal elsewhere as time goes on.

Consider other factors

While price is important, it's not the only thing to consider when comparing insurance quotes. You should also look at things like customer service and claims satisfaction. Check customer reviews and the feedback on third-party websites like J.D. Power and AM Best. You should also make sure that the insurer is financially stable and able to pay out your claim if you need to file one. You can check the financial health of insurance companies with rating agencies like AM Best and Standard & Poor's.

Get the right coverage

Make sure you're comparing the same types and amounts of coverage from each company so you can find the best rates for the insurance you need. You'll also want to choose the right liability coverage limits. Liability coverage protects you financially if you cause an accident, so you should have enough coverage to protect your assets. A good rule of thumb is to choose liability limits that are equal to or greater than your net worth.

Take advantage of discounts

Taking advantage of discounts is a great way to save on your insurance premium. Here are some common types of discounts you might be eligible for:

Good Driver Discount

If you haven't filed an insurance claim and have a good driving record, you can probably get a good driver discount. Companies see good drivers as less of a risk and are therefore more likely to offer lower rates.

Multi-Car Discount

If you have more than one car on your policy, you will likely be offered a discount. Insuring multiple vehicles with the same company is often cheaper than insuring them separately.

Low-Mileage Discount

If you don't drive much, your chances of staying accident-free are better. Let your insurance company know if you work from home or only drive for pleasure, as this may make you eligible for a low-mileage discount.

Good Student Discount

If you have high school or college students in your household who get good grades, be sure to let your insurance company know. Many companies offer discounts for students with good grades, usually a B average or higher, or if they rank in the top 20% of their class.

Group Insurance

Some companies offer reductions to drivers who get insurance through a group plan from their employers or other associations. Ask your employer about group insurance plans and inquire with any groups or clubs you are a part of to see if this is an option.

Anti-Theft Discount

If your car has an anti-theft system, you may be eligible for a discount. These discounts tend to be small, but some insurers still offer significant savings for customers with anti-theft systems. If you own an older vehicle that lacks anti-theft features, ask your insurance company if there is anything you could install that would qualify you for a discount.

Defensive Driving Course Discount

Some insurance companies offer discounts for drivers who complete an accredited defensive driving course. Check with your insurance provider to see if they offer this discount and which courses are approved.

Pay-in-Full Discount

Some insurance companies will give you a discount if you pay your full 6- or 12-month premium upfront instead of in monthly instalments. This type of discount could save you about 5% on insurance premiums.

In addition to these common discounts, there may be other, lesser-known discounts that you can take advantage of. It's always worth asking your insurance company about any special discounts they offer, such as for military personnel or employees of a certain company. You may also be able to save by bundling your insurance policies. For example, you can often get a discount by buying auto insurance from the same company that provides your homeowners or renters insurance.

Increase your deductible

Increasing your deductible is a quick and easy way to lower your insurance premium. The deductible is the amount you pay out of pocket before your insurance coverage kicks in. By requesting a higher deductible, you can lower your insurance costs substantially. The higher your deductible, the less you'll pay for your premium.

For example, if you increase your deductible from $200 to $500, you could reduce the cost of your collision and comprehensive coverage by 15 to 30%. If you increase your deductible to $1,000, you could save 40% or more. So, if your current deductible is very low, let's say $100, increasing it to $1,000 could save you $250 or more over six months for a comprehensive policy.

However, it's important to be careful not to make your deductible too high. There are very few scenarios in which you can avoid paying a deductible, and if you get into an accident, you don't want to be faced with paying more out of pocket than you can afford. Before choosing a higher deductible, be sure to have enough money set aside to pay it if you have a claim.

Reduce your coverage

If you're looking to lower your insurance bill, one option is to reduce your coverage. Nearly every state requires a minimum amount of car insurance, but your coverage might include more than what's required. If that's the case, consider lowering your liability insurance limits to reduce your premium. You can also drop optional coverages like comprehensive and collision, as long as you don't have a car lease or loan that requires them.

For example, if you own an old car that isn't worth very much, you might consider dropping collision and comprehensive coverage. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost-effective.

However, before you reduce your coverage, make sure that you are still complying with your state's insurance laws, as well as any coverage requirements from your lender or lessor.

Improve your credit score

Improving your credit score is a good goal to have, especially if you plan to apply for a loan to make a major purchase, such as a new car or home, or qualify for one of the best rewards cards available. It can take several weeks, sometimes several months, to see a noticeable impact on your score when you start taking steps to turn it around.

• Pay your bills on time: Your payment history is one of the most important factors in determining your credit score. Set up automatic payments for the minimum amount due to avoid missing a payment.
• Keep credit card balances low: The second most crucial component of your credit score is your credit utilization rate, which is the amount of revolving credit you're using divided by your total available credit. Lenders typically like to see a credit utilization rate at or below 30%.
• Limit new credit applications: When you apply for a new credit card or loan, a hard inquiry will appear on your credit report, possibly leading to a brief dip in your score.
• Keep old accounts open: Closing old credit accounts can shorten the overall length of your credit history. Lenders generally want to see established lines of credit.
• Dispute credit report inaccuracies: You can get a free credit report from each of the three main credit bureaus and dispute any inaccuracies, such as incorrectly reported late payments.
• Get a credit-builder loan: If you're focused on building credit from scratch or recovering from a hit to your score, a credit-builder loan from a credit union could help.
• Seek a secured credit card: This type of card requires a cash deposit, which becomes your credit limit. You can then use the card as you would any other, and the deposit protects the issuer from the risk of non-payment.
• Join an account as an authorized user: You can join a trusted family member's or friend's credit card account as an authorized user. The card's payment history will show up on your credit report, so pick someone with good credit.
• Get credit for monthly bill payments: Experian Boost lets you add eligible on-time phone, utility, and streaming payments to your credit report, which may cause your FICO® Score to rise.

Frequently asked questions