How To Negotiate Lower Car Insurance Premiums
You’ve done your research. You’ve shopped around. You’ve avoided the crocodile pit of unethical car salesmen, found a good dealer, a great car, and negotiated a fair price. You’ve got a new set of car keys in your pocket and a smile on your face. But you’re not done yet.
Before you can enjoy that new car smell, you’ve got to get your car insured. Car insurance premiums can take a big chunk out of your monthly budget. Taking the time to learn how to negotiate a lower car insurance premium now can save you money down the road.
Choose Your Coverage Carefully
Knowledge is priceless. Car insurance is expensive. Educate yourself about the four different types of insurance available, so that you can choose the type that best fits your needs. And when shopping for car insurance, be sure to know what situations and circumstances will not be covered. Here’s a brief summary of the four main types of insurance you can choose from:
Four Types of Car Insurance
1. Compulsory Third Party Insurance (CTP)
· Compulsory. It is illegal to drive without this insurance.
· Covers costs of injury and death to others
· In some cases, covers costs of injuries you receive
· Exclusions: In some cases, coverage of your injuries is not provided.
2. Third Party Property Insurance
· Covers damage your car causes to other people’s property.
· Covers your own legal costs.
· Exclusions: Does not cover costs of repairs to your car.
3. Third Party, Fire & Theft Insurance
· Covers damages your car causes to property of others.
· Provides limited coverage in case of theft or fire
· Exclusions: Does not cover repair costs of your car caused by accident.
4. Comprehensive Insurance
· Provides most extensive coverage
· Most expensive form of car insurance
· Covers cost of damage to your car and other people’s property in an accident.
· Covers theft.
· Optional coverage may include providing you with a replacement vehicle while yours is being repaired.
Always Shop Around
Once you’ve determined the best type of coverage, it’s time to find the best price. Apply the same logic when you were shopping for a car: shop around. Never make a decision unless you’ve compared the prices between at least three different insurance companies. This is easier perhaps, than it sounds. Car insurance is big business, and most companies have their information easily available online. Many sites also offer quote calculators to help determine the costs of different premiums. You can also ask your friends and family which companies they use. If you prefer to speak to someone in person, call several different companies to request a personal quote. Remember to also call a local insurance agent as well. Sometimes, a local agent can provide better rates (and customer service) than a national number.
It’s an Interview: Ask a Lot of Questions
When interviewing an insurance representative or agent about their premiums, remember to take notes. Write down your questions beforehand. Always be honest when giving them information that could affect your insurance premium. And always be respectful when requesting information.
When speaking with an insurance company, remember that several factors can affect the cost of your policy. Individuals with a good driving record pay less for their insurance than people who have a bad driving record. And when it comes to insurance, age does matter: If you’re 25 years of age or younger, and male, you’re likely going to pay more in premiums. Other factors that might affect the cost of your insurance include:
· The type of car you drive, including the age, make, model, and style.
· The number of previous claims you have. You may receive a discount for no claims.
· Where you live also affects the cost of your insurance, as well as where you park your car (in a garage or on the street)
During the conversation, be sure to ask what types of factors, discounts, and incentives are available to help lower your premiums.
Time Well Spent
Don’t ever allow yourself to feel pressured into signing a policy you are not 100% certain about, so don’t be afraid to say no. Negotiating a better price for your car insurance takes a little bit of time, and effort, but can end up saving you money. It’s time well spent, without driving yourself crazy in the process.
This article contains general advice about car insurance. The author has not taken into account your financial situation or needs and you should consider whether the advice provided is appropriate for your own circumstances before relying on it.
Filed Under: Insurance Tips
