Auto Insurance Bids: Negociation 101
When you’re older and you have a lengthy driving experience, bidding for car insurance is quite insignificant. The risk you represent to a potential insurer is very minor. For everybody else, the price you pay relies on your negotiation skills.
From a scholar perspective, to negotiate means to discuss an issue, to debate in order to reach an agreement. A process that involves recognizing the value of the other and be ready to make concessions. Whenever possible, the negotiator seeks to provide interesting offers to the other party, which are actually unimportant to him. The goal is not to convince the other person using the best argument, but to convince them of the importance of making concessions to get what we both want. In the context of insurance, you want the best auto insurance bid, while the insurer wants the highest premium you can afford.
The best way to negotiate the price of insurance still is to provide a cheaper estimate from a major competing insurance company.
Use the competition
Doing so gives you leverage, the edge you need to negotiate that price. Now with the internet, you can compare several companies and get instant quotes in a couple minutes. Just make sure the coverage you get is the same, especially when shopping for full coverage car insurance. Shop around and get quotes from multiple insurers.
Ensure that the generated estimates offer similar guarantees in order for the comparison to be valid. Some companies peel the amount for deductibles to lower their rates. That’s genuine way to reduce the costs, if you really believe you won’t get into an accident.
Good cop, bad cop
Sure, you could argue with the representative directly and give him attitude. Try it and come back to this very post. So? Of course it won’t work. We’re talking about trained sales people, they have ways to get around your aggro. There’s no need to be soft, but use the authority of a third person. For example, when an offer is made to you on the phone, ask if you can consult your wife/husband/mother. After a mumbled background conversation, come back and nervously laugh, joking about how the offer wasn’t approved by your boss. It sounds stupid, but you won’t believe the results!
Group your contracts
Most insurance companies offer additional discounts to customers who place all their insurance with them. With multiple contracts, you will be in a strong position to negotiate a better rate on all your contracts. Again, more leverage = smarter insurance bids.
Choose the annual invoice
Some insurance companies collect management fees for payment by check and regulations split (monthly, quarterly, semi-annually). Therefore, where possible, prefer the annual payment. One single deposit is easier to integrate into your budget and also less prone to quick inflation.
Accompanied driving (young drivers)
The vast majority of insurance companies give discounts to young drivers (under 3 years of license) who have opted for accompanied driving. Who knew your old folks could still help you out.
Driving courses
Some insurers offer driving courses, or can refer you to special driving lessons. In addition to being a good experience for young drivers, these courses allow for a bigger reduction for novice drivers. Depending on where you live, you will find advanced driving certifications, like snow or ice driving, for example. Those certifications can greatly reduce your premium.
Older vehicles
If you can’t stand supervised driving or driving courses, the most economical solution is to buy a five year old underpowered vehicle with low value. Then, after a year or two, assuming you have a clean driving record, prices will drop. Talk to your insurer about anti-theft etching services, where you can get your VIN (vehicle identification number) printed on some parts like your engine cover, rims, lights, radiator, etc. Such services can dramatically reduce your insurance bid.
