Can You Negotiate Car Insurance Rates?

If you’re wondering if you can negotiate auto insurance rates, the short answer is no. States regulate car insurance costs, so you can’t ask your insurer to give you a lower price.

However, that doesn’t mean that you are stuck with the quote a car insurance company offers. One of the most effective strategies for lowering your rates is shopping around for estimates to see how rates vary between providers.

In addition to shopping around, there are several ways to find a more affordable rate, which MoneyGeek’s guide explores in detail.

Are Car Insurance Rates Negotiable?
How to Get Cheaper Car Insurance Rates
Easiest Car Insurance Discounts to Find
Frequently Asked Questions

Key Takeaways

Is insurance negotiable? No, but there are several ways to lower your coverage costs.

Although shopping for quotes and checking available discounts are common cost-reduction strategies, you can also try increasing your deductibles or switching to pay-per-mile insurance.

There are several discounts insurers commonly offer. Check with your provider to find out which ones they have and how you can qualify.

Are Car Insurance Rates Negotiable?

Auto insurance premiums are similar to your utility bills, such as water, gas and electricity, in that they are not negotiable. However, that doesn’t mean your hands are completely tied. There are several ways for you to get better car insurance rates.

For example, you can check out the discounts different car insurance companies offer and determine which ones you qualify for. MoneyGeek also encourages prospective buyers to shop around and compare quotes from several insurers before selecting a policy.

Our free online quote tool can help you quickly see possible rates from different providers. You can use it to find the best rates for your buyer profile.

How to Get Cheaper Car Insurance Rates

Auto insurance prices are non-negotiable, so you can’t ask your car insurance company to lower your rates. However, there are several ways to find more affordable premiums.

Compare quotes from multiple insurers.

Although states regulate the cost of car insurance, different companies offer varying rates. Gathering quotes is an effective way to find a company offering cheap auto insurance.

Ask about available discounts.

Car insurance companies often offer driver discounts, and it’s smart to find out whether you qualify for any of them. These could be based on your profile, preferred payment methods, driver history and vehicle equipment or other factors. MoneyGeek’s guide to auto insurance discounts can help you identify these.

Increase your policy deductible.

A deductible is a set amount you pay out of pocket before your policy begins covering damages. The higher your deductible, the lower your premium typically becomes.

Consider switching to pay-per-mile insurance.

Deductibles and discounts are excellent strategies, but a wiser choice may be purchasing pay-per-mile insurance instead of a standard policy. It is especially effective if you drive less than 12,000 miles in a year.

Determine whether you need all the coverages in your policy.

Sometimes it’s good to revisit the coverages included in your policy. For example, you can consider removing comprehensive insurance from a full coverage car insurance policy if your premiums amount to more than 10% of your car’s cash value. You can remove coverages if you’re sure you won’t be underinsured. Doing so will typically result in lower premium payments.

Easiest Car Insurance Discounts to Find

An excellent way to get better car insurance rates is by signing up for auto insurance discounts. Be sure to search for potential discounts beyond what car insurers advertise on their websites — some discounts aren’t available in specific states. It’s most effective to ask an insurer directly about the discounts they offer and how to qualify for them.

Common Car Insurance Discounts


Vehicle Safety Equipment Discount	Installing airbags in your car can help you qualify for a discount. Having anti-theft devices like tire locks or kill switches in your vehicle may also help you get a discount.
Bundling	You can get lower rates if you purchase multiple insurance products from one insurer. Find out if your provider for homeowners insurance also offers auto insurance and whether you qualify for a bundling discount.
Defensive Driving	Some insurers will lower your premium if you take a defensive driving class. Make sure to find out your insurer’s requirements. There may be prerequisites on age or course type that you need to meet.
Driver's Education	Insurance premiums are typically higher for young drivers. One way to lower premiums is through a driver’s ed discount if your insurer offers it.
Safe Driving	Insurers offer lower premiums to policyholders who remain claim-free for several years. The required length of time varies between providers.
Multiple Car	Car insurance companies often offer a discount if you get coverage for multiple vehicles.
Paperless	Instead of having your documents sent to you through the mail, you can arrange to receive them electronically, which may lead to lower rates.
Pay in Full	Choosing to pay your policy in full upfront instead of monthly installments may make your premiums lower overall.
Customer Loyalty Discount	Staying with the same insurer for several years can earn you a loyalty discount. Contact your insurance provider to find out the required period.
Military Discount	Some insurers offer a discount to customers who are current or former members of the military.

Frequently Asked Questions

Many people wonder if car insurance is negotiable. MoneyGeek gathered the most commonly asked questions about car insurance rates to help you navigate the best deals.

Can you negotiate car insurance?

Car insurance prices are state-regulated, so you can’t ask your insurance company to lower your rate. However, there are several strategies you can use to get lower premiums.

How do I lower insurance rates?

Remember, rates vary between providers, so shopping around for quotes can help you get the best deal. You can also ask your insurer about possible discounts and see how you can comply with these.

Why is my car insurance expensive?

Insurers consider various factors when calculating car insurance rates. Your driving history (whether or not you have a clean record) or your location (whether or not your neighborhood has high theft rates or is densely populated) may contribute to more expensive car insurance rates.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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