There are different kinds of insurance shoppers. There are ones at that have different mindsets. One question that many fail to consider is if auto insurance rates are negotiable

There are those group of individuals that shop for insurance as quickly as they can. They don’t question the premiums that they are to pay for. They just assume that all insurance companies are going to charge the same price.

Then there are the group of insurance shoppers that will take it a step further. They will do some research on a few different insurance companies. They may pick three or four from a directory. Usually, those comprised of the large branded insurance companies. The shopper will call a few of these to get some quotes. It provides a limited amount of information. But usually, they will choose the one with the lowest premiums.

Then another sector of people will stay with the same insurance company for many years. It is common for young people to use their parent’s insurance company. They are under the impression that if their parents are happy with it, they should be too.

There is a group of insurance shoppers that put time and effort into their insurance buying. It is these individuals that will gather a good selection of quotes. Then they research each of these further to see what the insurance companies have to offer

Are the Premiums Negotiable?

negotiable

Dealing with insurance companies can be a challenge. A lot of this comes from the insurance buyer not being informed about vehicle insurance. They will rely on what they are told. Based on this they will not attempt any negotiations. But, it is not likely that one can beat down the price the insurance company is offering. Insurance companies use a lot of statistics and resources to set their premiums. These become hard and fast policies for them to create quotes by. They are not likely to deviate from the quote that they settle on. There is not much room for bargaining with insurance companies. Yet, that does not mean that the insurance shopper cannot take control of their insurance shopping.

Taking Control Of Insurance Costs

There are many different ways that individuals are looking for vehicle insurance. They can stay in control of what it is going to cost them. There are many different circumstances that arise. For why one needs to buy vehicle insurance. For some, they already have their vehicle and need to get it insured. Then going forward they renew their insurance on a yearly basis. Or shop around for other insurance. Then there are those that are thinking of buying a new vehicle. They want to know what the insurance costs are going to be.

Buying Insurance For A Current Vehicle

Individuals that own their vehicle have to have it insured. They do this when they are registering the vehicle. It means that they are in a position where they know what the vehicle is and have to shop for insurance for it. The insurance company will use a lot of different metrics to determine how much they are going to charge. These metrics are often statistics provided about different concerns for the insurance. For example statistics about an area where the car is going to be.

There is limited control to what one will have over the metrics used. They will have no control over the statistics. They will have control over what pertains to them on a personal level. For example, insurance companies will look at the driver’s history. Plus, where they live, and these are things that are in control of the driver.

The driver can work hard at keeping a clean driving record. Not only for the avoidance of collisions. But the avoiding of tickets or the accumulation of demerit points.

An individual has control over where they live which could affect their vehicle. But, most people are not going to let vehicle insurance dominate where they are going to live.

Insuring A New Vehicle Purchase

new vehicle

Insurance companies do take into account the type of vehicle they are insuring. Again they will use statistics that pertain to a particular make and model of the vehicle. For those that want to keep their insurance down, it is worth looking at the metrics. Those that apply to the car being bought. The vehicle purchaser may be willing to compromise on the vehicle they are buying. If so, there could be some good savings here.

Looking At The Insurance Discounts

discount

There is a substantial way to be able to save on insurance by knowing what available discounts there are. Insurance shoppers will do well to know that insurance companies vary and what they offer. They will also vary in the premiums. It is a mistake to think that all insurance companies will give the same exact quote. It is because each of them has flexibility in the regulations that they must follow. Insurance companies will look at the different metrics differently. What may be relevant to one insurance company may not be a priority with another. These are the factors that affect the premiums.

One of the metrics insurance companies will use is their internal data. If they have had a large number of claims about a specific vehicle, then this is going to be a red flag for them. The new insurance shopper will suffer as a consequence of this. Another insurance company may not have the same issue. It is not factored into the premiums.

The same applies to the type of insurance discounts that are available. Insurance companies are competitive.  They will use their discounts as enticements to draw in new clients. A savvy insurance shopper will take advantage of this. They will seek out insurance companies that are offering the most discounts. Looking for those that apply to them. By doing this, they are remaining in control of the cost of their insurance.

Resources

https://www.insurancehunter.ca/blog/5-tips-negotiating-lower-car-insurance-rate
https://www.theglobeandmail.com/globe-drive/culture/commuting/how-to-save-money-on-car-insurance/article1375580/
http://business.time.com/2012/08/13/12-things-you-should-always-haggle-over/slide/10-insurance-rates/