Cheat Sheet: How To Get The Best Car Insurance Deal
Cheat Sheet: How To Get The Best Car Insurance Deal
Who knows car insurance better than a car insurance agent? Very few. The problem is if you reach out to a car insurance agent and ask what's the best insurance for me—they are paid based on the cost of the premium!1
That's why we wanted to do the digging for you. We compensated our agent for their time,2 on a consulting basis, in order to get the truth.
Step 1: Get Your Leverage From Another Provider
This is the most important step because you need to "arm ourselves with leverage in the negotiation." In this step, you need to find a provider who will offer you a better deal than your current provider. It's not hard considering the average American is overpaying by $368 due to price optimization (those who stay with their provider longer, pay more).3
One of the biggest opportunities is in discounts. Discounts are often advertised, but unless you bring them up, they try to avoid giving them to you. Makes total sense for them right? Lure you in, then hope you forget...
We went through a ton of providers and found that most offer tons of discounts, we've included below the companies that offer the best:
If one of the above didn't give you a better rate, you should try going through a "quote comparison tool" like QuoteWizard. QuoteWizard compiles all of the best rates at once—saving you tons of time. To use QuoteWizard, just click your state on the map below:
Step 2: Use Your New, Lower Rate To Negotiate
Once you have your lower rate in-hand, call up your current provider. Now that you have a lower rate to potentially switch to, you have all of the power. Of course, if you aren't thrilled with your old company, or really like your new company, you can skip this part.
Here's a potential opening exchange:
You: Hi [Car Insurer], I wanted to call about my premium. I just received a quote from [new provider] and they quoted me at [new premium], but I'm currently paying [current premium] with you.
I'd like to stay with [current provider] because I'm happy here, but the savings are really hard to pass up. Would you be able to match the new premium?
Agent: Let me see what I can do. I see here that you may qualify for [...]
It's pretty much as easy as that!
Step 3: Run A Quick Analysis
There are a couple different scenarios now that you've reached step 3...
If you are unsatisfied with your current provider, regardless of steps 1 and 2, then switch.
If you are satisfied with your current provider, and they matched the new premium, then stay.
If you are unsure, and your new premium is cheaper, here is the calculation:
(Total Savings Per Month) X (12 Months) = [Yearly Savings]
Then, take your yearly savings amount from above and divide it by 0.25. It takes roughly 15 minutes to switch your car insurance from one provider to another, because your new company will do most of the work for you.
Now you have how much you would make (or save) per hour by switching. We recommend if it's anything over minimum wage, you should switch; if it's minimal, then its up to you.
Conclusion
You are essentially an annuity to car insurance companies. Even when you deserve a reduced rate—for good driving, a life-changing event, etc.—they have no reason to give you the reduced rate. Unless you put some pressure onto their bottom line by calmly asserting your optionality, you'll be stuck overpaying.
Put the power back into your hands by checking out your options and getting started below!
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