Car Insurance Rates

Is Car Insurance Negotiable?

We understand that auto insurance can be one of the most unrewarding bills you pay. Most of the bills you pay are for a tangible thing or service: you use a certain amount of electricity and water, so you pay a bill that corresponds to your usage; you pay your mortgage so you can live in your house; you pay an internet provider so that you can access the web at home. On the other hand, with auto insurance you pay premiums month after month and seemingly receive nothing in return. Your driving record is clean, and you have never had to actually use your auto policy, but the bills keep coming. Because of that price tag with no tangibles in return, many people believe they should pay less, and that they should be able to negotiate to drastically reduce their premiums. But is car insurance negotiable?
The answer to that questions is a hard no. You can’t just walk in Wal-Mart and start haggling the cashier in the hopes of paying less, but there are other ways you can save money. You can read reviews to ensure you are getting the exact product that matches your needs, compare prices, and take advantage of available sales and coupons. The same concept applies to auto insurance. Each insurance company offers rates that are fixed and determined by factors such as age, gender, vehicle usage, and annual mileage, which means they can’t just change their price on a whim. So, you can’t haggle the representative and demand a reduced rate, but there are other ways you can reduce your bill. You should
(1) Strategically plan the exact coverage you need,
(2) Compare Companies
(3) Take advantages of available discounts
(4) Practice Good Driving Habits

Choose the Right Coverage

So, you can’t demand lower prices, but you can drastically reduce or increase your bill based on the coverage you decide you need. Here in Arizona, there are minimum requirements:
1. Liability insurance—$15,000 bodily injury liability per person and $30,000 total, along with $10,000 property damage liability
2. Personal injury protection and/or medical costs
3. and uninsured or underinsured motorist coverage to compensate for the 12% of drivers in Arizona who are uninsured
Outside of those requirements, you have complete freedom. You can stick with the minimum, get comprehensive coverage to cover essentially any problem/damage that stems from a vehicle, or find a middle ground.
Another part of your policy that you can control: the relationship between your premiums and deductibles. If you are an experienced, cautious driver looking to save money, you could aim for a higher deductible, which would then reduce your monthly premiums. For an inexperienced or young driver, especially for one who is driving a nice car, the opposite strategy of reducing the deductible and raising the premium may be your best option.

Comparing Prices Between Companies

You can’t haggle a company for a lower rate, but you can (and should) shop around to see which companies have the best rates and packages. Each company uses different analytics and algorithms to determine their fixed rates. This means that the packages and prices will range from company to company. By knowing exactly what you are looking for and testing that package in multiple companies, you will be able to find the best price for the package you need.

Take Advantage of Discounts

As for discounts and sales, there are several that are frequently available to help you save money. Here are a few of the most common discounts:
1. Multi-car policies: If you have multiple drivers and cars in your family, this allows you to easily cover everyone and save money in the process.
2. Multi-policy discounts: These are a great way to bundle all your insurance bills together, which allows you to both save money and consolidate your bills.
3. Good Student Discounts: If your child is in high school, you know how expensive their premiums can be. You can put a dent in that premium by showing the insurance company how well they are doing in school.

Practice Good Driving Habits

Of course, one of the easiest ways to save on your auto insurance is to ensure that you avoid traffic violations and damaging your car. Avoiding tickets will help keep your rates low. If you do find yourself with a ticket or violation, make sure you take a class or complete the necessary steps to remove it from your record. Driving cautiously will help you to avoid crashes, which taint your record and raise your rates.

We Can Help You

Our team at Olson has extensive knowledge of auto insurers, the plans they offer, and the rating strategies to determine pricing. Our team would love to help you find an insurance package that meets your needs and gives you exactly what you need.
Call us now at 623-583-7999 or visit our website for additional information.

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