Fourth, be an expert caller by asking these questions.
With each call, you should say, “AAA (or whoever) is offering to insure me for $XXX less” (silence). See what they do. (Note: Negotiating lower insurance using this technique is much harder to do with car insurance companies than banks, so don’t expect very much from this.)
How much would I save if I insure my car and house with you?
What about renewal discounts? How long have I been a member with you? What can you offer me as a discount for long-term membership?
Can I save money by pre-paying my entire year up front?
Let’s check my car. I know other firms offer discounts for features like anti-lock brakes. What about you?
What kind of low-mileage discounts do you offer?
If I enrolled in a defensive-driving course, what kind of discount would you offer? Oh, really? Which courses qualify?
What about discounts for my employer? (Tell them the specific name of your employer?)
Some insurance companies offer discounts for low-risk occupations (engineers). What kind of competitive rates do you offer?
Am I paying for roadside assistance? What other additional “benefits” am I paying for? (If you already pay for AAA, you don’t need roadside assistance through your car insurance. Also, check your credit card: They may offer roadside assistance (but call them and ask how much it really costs if you have to use it – some of their offers for “roadside assistance” really mean “we will assist you by calling someone for you and then charging you out the ass”).
Can you walk me through the deductible changes I could make to save money? (Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you more than 40%. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim. More details here.
AAA, Costco, credit cards, large employers, associations (AARP, teachers’ union): Many of these offer discounts on car insurance. Log onto their website and browse to “perks.”