Auto Insurance Companies: Negotiating Claims And Settlements

Auto insurance rates are not negotiable, but there are several ways to get a better deal. While you can't haggle or set your own premium, you can request quotes from multiple insurance providers and compare prices to find the best rates for your needs. You can also explore potential discounts, such as multi-policy, multi-vehicle, safe driver, vehicle safety features, pay-in-full, and paperless discounts. Additionally, increasing your deductible or switching to pay-per-mile insurance can lower your premium. If you've been in an accident, you can negotiate a better settlement by doing your research and knowing the true value of your car.

Compare quotes from multiple insurers

While auto insurance rates are not negotiable, comparing quotes from multiple insurers is a highly effective way to find the best rates for your buyer profile. This is because rates can vary significantly between insurance companies, even for the same coverage.

Online quote comparison tools can help you obtain and compare quotes from multiple insurers simultaneously, which is much more efficient than contacting each company individually. When comparing quotes, be sure to provide the same types and levels of coverage so that you get an accurate comparison.

In addition to comparing quotes, you can also lower your auto insurance costs by exploring possible discounts, increasing your deductible, or switching to pay-per-mile insurance.

Ask about available discounts

While it is not possible to negotiate car insurance rates, there are several ways to reduce your auto insurance costs. One way is to ask about available discounts. Car insurance companies often offer driver discounts, and it is worth finding out if you qualify for any of them. These could be based on your profile, preferred payment methods, driving history, vehicle equipment, and other factors.

• Multi-policy: This discount is awarded when you buy more than one policy from the same company.
• Multi-vehicle: Insuring multiple vehicles with the same company can often reduce your premium.
• Safe driver: If you have a clean driving record, you can usually avoid premium surcharges.
• Vehicle safety features: Insuring a car with safety equipment like side-curtain airbags, anti-lock brakes, or an automatic braking system often results in lower insurance premiums.
• Pay-in-full: Paying your car insurance in full, rather than in monthly or quarterly instalments, can sometimes lead to a discount.
• Paperless: Choosing to receive your documents electronically can sometimes lead to lower rates.
• Defensive driving course: Taking an approved defensive driving course can often lead to a discount.
• Good student: Full-time students who earn good grades (typically a "B" average or higher) can often get a discount.
• Military or "preferred occupation": Many insurers provide discounts for veterans or members of the armed forces, as well as certain other occupations such as police officers, firefighters, or teachers.
• Low mileage: If you drive fewer miles than average, you may be eligible for a low-mileage discount.

Remember that discounts vary from one provider to another, so it is always worth checking with your insurance company to see what discounts are available and how you can qualify for them.

Increase your policy deductible

Increasing your policy deductible is a great way to lower your premium. A deductible is the amount you pay out of pocket before your insurance policy begins to cover damages. In other words, it is the amount you must spend before your insurance policy pays for some or all of your claims.

The general rule is that the higher the deductible, the lower the premium. This is because a higher deductible means you are responsible for more costs before your insurance coverage kicks in. On the other hand, a lower deductible means you will have to pay a higher premium.

For example, if you have a $500 deductible and $3000 in damage from a covered accident, your insurer will pay $2500, and you will be responsible for the remaining $500.

When choosing a deductible, it is important to consider your driving history and the likelihood of filing a claim. If you have had accidents in the past and drive on busy roads, you may be more likely to file a claim and pay a deductible. In this case, you may opt for a higher deductible to lower your premium.

It is also important to ensure that you are comfortable with the amount of the deductible and can afford to pay it in the event of a claim. While a higher deductible can save you money on your premium, you will be responsible for paying the deductible if you need to make a claim.

Switch to pay-per-mile insurance

While it is not possible to negotiate auto insurance rates, you can switch to pay-per-mile insurance to save money if you drive less than the average person. This type of insurance is ideal for low-mileage drivers with safe driving habits.

Pay-per-mile insurance, also known as pay-per-use insurance, lets you pay for coverage based on how much you drive. Your monthly bill will change based on your mileage. You will pay a base rate each month, which is determined by factors like your age, vehicle, and driving record. If you don't drive at all in a month, you only pay the base rate for that month. The base rate is usually $30 or higher.

In addition to the base rate, you will pay a few cents per mile. For example, if you drove 200 miles at 4 cents per mile, you would be charged $8 for mileage, plus your base rate. There is usually a daily mileage cap of 250 miles per day to prevent high bills after a road trip.

Pay-per-mile insurance is ideal for those who drive less than 12,000 miles per year or 1,000 miles per month. If you drive more than that, pay-per-mile insurance may become very expensive. It is also a good option if you have a second vehicle that you rarely use or if you are a student who doesn't need to drive their car often.

Currently, only a few insurers offer pay-per-mile insurance, including Metromile, Allstate, Nationwide, and Mile Auto.

Remove coverages you don't need

When considering auto insurance, it's important to remember that you can't negotiate insurance rates. However, you can remove coverages you don't need to lower your premium.

Full coverage car insurance is likely a poor investment for vehicles older than 10 years. As a car ages, its value decreases, and the cost of insuring it may become higher than its value. In such cases, it is advisable to switch to liability-only insurance.

If your car is not old but has low value, you may want to consider removing full coverage. The payout limits on comprehensive and collision policies are based on the actual cash value (ACV) of your car, so if your car is stolen or totaled, the payout may not be worth the premiums you pay.

You may also want to remove comprehensive coverage if:

• Your car is garaged or otherwise protected.
• You plan to replace your car soon.
• Your car is worth less than the deductible on your comprehensive coverage.

Additionally, you can likely do without collision coverage if:

• Your car is not worth a lot.
• You don't drive much.
• You can afford car repairs or replacements out of pocket.

Frequently asked questions