This may come as a shock, but most insurance company reps aren’t prepared to list out each and every possible discount you could ask for on your car insurance. Wait, are you ok? You seem to be breathing heavily…  Ok, now wouldn’t it be great if you knew ALL the possible car insurance discounts that companies usually offer? …and, and, what if you had a SCRIPT written out for you that you could use on the phone while talking to your current or prospective car insurance company?

My friend, I’m so glad you asked! We’ve got you covered.

Talking – or negotiating – with your auto insurance agent to get a lower rate can be an overwhelming task. In fact, many people find one rate and stick with it because they don’t want to go through the hassle of negotiating. The truth is, even getting the smallest discounts on your auto insurance can really add up and help you save quite a bit of money in the long run.

The script below can be used as a resource to help you get the lowest rate when talking with your auto insurance company.

Step 1 (before you call):

  • Have a copy of your current policy and spend a few minutes going through it so you know exactly what is covered and how much it costs you.
  • Do a bit of research online so you have an expectation of how much your insurance will be – and also so you’ll know what the competitor offers.

Step 2 (during the call):

  • Begin by saying, “X Company is able to offer me a monthly premium of $X. Then, stay silent for a moment and see if they have a response.
  • If they offer you the same rate, remember these five key words: “I just can’t afford that.” Any agent you’re talking to will realize you need a lower price in order to choose their company. Usually, the agent will come back with, “Let me see what I can do for you.”
  • After they investigate, it’s your turn to ask questions – and it’s best to start with questions related to loyalty. For example:

o   How much can I save if I insure my house and car with you?

o   Do you give a renewal discount for repeat customers?

o   Do you offer a discount to long-term members?

o   Can I save money by paying the entire policy up front or in chunks, instead of month-by-month?

  • Next, ask more general questions related to discounts, such as:

o   Other companies have offered me discounts for safety features like anti-lock brakes, an anti-theft system, etc. Can you offer the same?

o   Do you offer low mileage discounts?

o   If I take a defensive driving course, can I get a discount? If so, what type of class should I take?

o   My employer is “X.” Do you offer any corporate rates?

o   Do you give discounts through any professional or retail memberships? (Example: AAA, AARP, Costco, etc.)

o   For even more discount questions to ask, reference the above section titled “37 Car Insurance Discounts”

Step 3: After you get an offer, ask them to modify it one more time.

Sometimes, insurance companies can throw in just a few extra discounts – so what’s the harm in asking one more time? After the agent gives you a rate that you’re comfortable with, pause, then say, “This sounds great, I’m very interested – but are there any other discounts you can give me before I decide to sign on?”

At that point, it’s likely they’ll know they’re dealing with someone who knows how to negotiate, but that’s okay. The worst case is that they can’t offer anything else. Best case, they’ll come back with another offer, at which point you can say, “That sounds great! Thanks for your help.”

So, my friends – keep this phone script handy for next time you talk with an auto insurance agent. It’s a great guideline that can save you time and money in the long run.

About the Author:

Pam King writes on frugality, safety and insurance literacy for Direct General, a low cost and customized car insurance rate provider. When not saving money on her insurance, Pam enjoys knitting, NASCAR, family and watching rollerderby! 🙂



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