The most important thing about negotiating your auto insurance is knowing when you should do it. If you wait too long, your rates may go up, and your coverage may not be as good as it could be. The most obvious time to negotiate is when you are having trouble paying your bills, moving cities, and buying a new car. Here are instances where you should negotiate your auto insurance:
Your Policy is Up for Renewal
The best time to negotiate your auto insurance policy is when it is up for renewal. That is when insurers are interested in lowering their rates so that you can get a better deal. But the deals may be gone if you wait too long to shop around for a new policy. So, if you want to get the best rate possible, it is essential to shop around as soon as your current policy expires.
When Your Credit Score Improves
When your credit score improves, you may be able to negotiate lower rates. Insurance companies use your credit history to determine how much they charge. The higher the score, the cheaper the rates. If you are shopping for auto insurance and want a better deal, make sure it is worth it to pay extra for a lower credit score.
Married or Divorced
If you are married, you can apply for a new policy with your current spouse. If you have separated from your spouse, ensure you have a court order that specifies the date of separation. Insurance companies want to ensure you remain covered until at least six months after the date of separation.
If you believe your marital status has changed since applying for insurance, call your agent and let them know. The agent will ask for proof of any marital status change and submit your application to the insurer. If divorced, you should immediately purchase a new policy in your name. This will protect your interests and those of your ex-spouse’s estate.
Bought a New Car
When you buy a new car, your insurance company offers you different rates depending on whether it is a used vehicle or a new one. The same applies when you trade your old car for a new one.
The first step is to find out what coverage your existing policy covers and what it pays for the same coverage under the new policy. This will give you an idea of how much more you should pay for the same coverage under your new policy.
If you have no idea what coverage your existing policy covers, call your agent and ask them exactly what kind of coverage it offers and how much each type of coverage costs separately. You may also want to ask if they have special programs that allow them to waive specific deductible amounts or drop certain types of coverage altogether.
Moved to a New City
If you move to a new city, you may want to consider getting a new car insurance policy. Unfortunately, changing your driving habits can lead to higher premiums for your auto insurance policy. This is especially true if you have had a few accidents over the past few years.
If you are changing jobs and moving within the same city, it may be best to wait until after that move before getting a new policy. Waiting until after the move will ensure that any claims from accidents while you still live there will not affect your rates when you get your new policy.
When Changing Insurance Companies
To get the most out of your auto insurance, you will want to ensure that you understand what is required to make a change. Also, make sure you are aware of any deadlines before deciding.
You can change companies by phone, physically, or online anytime. However, some things may impact your ability to make changes. For example, if your policy has a waiting period (typically 30 days) before it takes effect, you will not be able to cancel it until after that period has passed. If there is an early termination fee, then this also applies.
If you are interested in changing insurers, start searching for rates as low as possible and compare them with other insurers within your state’s rating system. You will find that many insurers offer discounts for switching companies; keep in mind that these discounts may not apply if you have existing claims on file with your current insurer.
The most important thing is that you get quotes from several different companies and compare them side-by-side. This way, you will better understand what you are getting for your money.
Your Driving Record Improves
If you have been issued a citation or ticket for any reason, it could affect your driving records and how much car insurance costs. However, this does not mean that all citations will cause problems with your insurer. For example, suppose one of these tickets has been dismissed or reduced in severity (for example, because you pleaded guilty). In that case, you should negotiate for lower premiums due to an improved driving record.
When You Bundle Your Auto Insurance with Other Policies
Bundling is when you buy insurance coverage from a company offering additional services and products. For example, if you have a home and car insurance from the same company, that is called combined coverage. It is the most common type of insurance offered by auto insurers.
You can use this strategy to lower your overall costs by offering discounts for bundling certain types of coverage together. For example, if you have collision and comprehensive coverage and liability coverage from the same company, that might qualify for a discount on your premiums.