How to negotiate car insurance
Key Takeaways
Negotiating is an effective tool for getting cheaper car insurance deals
Comparing prices and researching the best deals can help you to haggle prices down
If you can’t get a cheaper deal, you can also haggle for freebies and other perks
Does haggling still work?
Haggling is a brilliant tool for getting the best deal possible on your car insurance, and can be very effective. It works best if you’ve done plenty of research, and can come to the negotiation armed with reasons that an insurer should offer you a better price.
Combining shopping around and comparing prices with strong haggling skills is the best way to save yourself money.
10 tips for haggling
If you’re hoping to negotiate a better price for your car insurance, there are some key things to keep in mind that will give you the best chance of success:
Do your research
When it comes to negotiating car insurance, you should make the call armed with evidence. Before your policy date renewal, research both what your provider and other providers offer. You can use our price comparison tool to find the best deals, and then ask your insurer to match or better the quote.
Choose your moment
Data shows that the best time to renew your car insurance is 20-27 days before your current policy expires. Renewing in this period can save you £231
Take your time
When haggling for car insurance, time can be your best friend. If you start to research insurance deals before you need to renew, you’ll have longer to explore your options. Take your time negotiating too – you don’t have to accept the first price offered to you. You can ask the insurer for time to consider their offer.
Speak to the insurer’s retentions department
Retention departments are responsible for keeping customers happy, and ensuring that as many existing customers stay with the company as possible. When renewing, ask to be put through to the retentions team. It’s in their interest to give you an offer that keeps you a customer, so they’ll be able to give you the best deal possible.
Practice your haggling skills
Haggling can be intimidating, but learning some basic negotiation skills can help you approach the call with confidence. Remember:
Be friendly. Try to build rapport with the service representative. A light-hearted approach can go a long way.
But also be firm. Convey to the service representative that you are knowledgeable, and willing to leave if necessary.
Use silence to your advantage. Don’t try to fill awkward pauses, as the service representative may fill them with a better offer.
Don’t panic if the person on the other end of the phone calls your bluff. You can always make an excuse to leave the conversation. Say you need to think about it, or discuss with a partner.
Ask your insurer to justify their offer
Has your insurer increased their prices? Ask them to explain their reasons. If these don’t seem fair or proportionate to cost increases, this gives you excellent ammunition to argue them down.
Remind the insurer of your loyalty
Are you a long-term customer? Make a point of this, if so. Some insurers will have special discounts for their most loyal customers that aren’t reflected in price comparisons, or may be more motivated to keep you if they are aware that you’ve been with them for a long time.
Ask about policy bundling discounts
Already hold a different policy with the same provider, or prepared to consider switching to do so? Many insurers offer discounts for customers who hold multiple policies with them, such as home or life insurance. Remind your insurer of any existing policies, or ask about what discounts they’re able to offer should you take out other policies with them.
Ask for freebies
If your insurer can’t lower their price, it’s always worth asking what else they can offer instead. You may be able to negotiate perks such as breakdown cover free of charge, meaning that your quote becomes comparable to – or even cheaper than – other deals.
Be prepared to switch provider if necessary
If all else fails, be prepared to change to a different insurer. Haggling is only effective if people are genuinely willing to leave a provider if they aren’t prepared to offer the best price, so vote with your feet, and find a new policy that works best for you.
Get cheaper car insurance by comparing quotes
The best way to prepare for a negotiation is by researching what deals are currently available to you. If your insurer isn’t prepared to match prices offered by other companies, then you’re already armed with the information you need to switch to a policy that works best for you and your budget.
You can compare quotes now to ensure that you’re getting the best deal, and prepare for any negotiation.
Frequently asked questions
Can I ask for cheaper insurance?
Yes, you can always ask for cheaper insurance. The old saying “don’t ask, don’t get” couldn’t be more true of insurance deals, and you might be surprised by what your provider is willing to offer if you ask.
Opt out of auto-renewal services in order to give yourself the chance to fully assess what your insurer is offering, consider your options, and negotiate a cheaper deal.
When should I start haggling?
The best time to renew your car insurance is 20-27 days before it is up for renewal. Within this time frame, you can haggle at any point. Just remember not to leave it too late – if your insurer is aware that you’re short on time, you’ll have less leverage.
Author
Katie Bishop
Insurance writer
Katie Bishop is an author and journalist with a decade of writing and editing experience. She has previously worked as an economics editor at Oxford University Press, and her business and finance...
