Negotiate your Insurance Bill? Is that even legal? Many people, businesses, and even smooth talking sales people will tell you the same thing when it comes to negotiating your insurance premium... "You cannot negotiate your insurance rate with an insurance company, your only option is to shop around. In the end, your insurance rate is what it is."
This myth, which seems to be a common understanding among the majority of the population, has deterred the public from even trying to get a lower rate. After all, why waste time if you know it's not even possible?
Why has this been a myth for so long? When was the last time you received a coupon in the mail or an online coupon code from GEICO, Progressive, or other insurance carriers? Never, right? What about a free oil change with every year's renewal? Have you ever seen a commercial advertising a weekend special on car insurance?
Unless your a caveman ( pun intended - GEICO commercials ), you will never have seen any insurance commercials that offer specials, buy 1 get 1 free, etc...but you will see facts or twisted facts. I refer to it as twisted facts because it seems funny Nationwide states in a commercial that people saved an average of $400 when they switched over from XYZ insurance company, then the next commercial from GEICO will state people saved an average of $400 when they switched over from ABC insurance company, and so on... If this was true for all people, my insurance premium should be $0 a year...haha.
The fact is, it is illegal in most states for insurance agents or companies to give more than $25 to any person within a 12-month period, with the intention to gain business from this incentive. In my opinion, and as a previous sales manager in the mortgage industry, title insurance companies are the biggest culprits of breaking this rule.
This law does not only include gifts, it includes discounts on insurance policies without merit. Because of this, the insurance industry is drastically different than any other industry. Imagine walking into a car dealership with the same limitations.
So you really can't get a lower insurance rate by negotiating, right? Not necessarily true, there is a loophole that is commonly practiced with business and commercial insurance policies. This can also be applied with personal auto and homeowners' insurance. Local insurance agencies will show much more flexibility than the larger, commercialized insurance carriers.
Listed below are a few ways to get a lower rate on your insurance premium:
- Fax your policy directly to multiple insurance agencies. Tell them that you want the same exact coverage as you currently have, but want a lower rate.
- Threaten to walk away from your current insurance agency.
- Combine your auto and homeowners' policy with one company.
- Take a higher deductible. Remove the free rental car and roadside assistance.
- Lower coverage (Not strongly recommended)
Florida Auto Insurance
