Learning how to lower car indemnity premiums is more authoritative for consumers than always. To help, I want to go over my system to do precisely that — lower your cable car policy in barely 4 steps — a well as give you 10 big scripts to use to uncover evening more savings .
Lower your Car Insurance Table of Contents:
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How to lower your car insurance
Step 1: Find how much coverage you need
Most U.S. states — besides New Hampshire and Virginia — require you to get car insurance a well as a certain total of liability coverage you need.
When it comes to the sum of liability that ’ s required, you ’ ll typically need to find coverage in three areas :
- Bodily injury (per person). This is the amount that is covered for each person who gets hurt during an accident.
- Bodily injury (total). The most an insurance company will cover for bodily injury per accident.
- Property damage (total). This does not include your own property. This amount only covers the damage sustained to the property of others.
Though every state requires you to get a certain sum of liability coverage, the wide sum of the coverage varies .
here ’ s a comprehensive list of car indemnity minimum coverage requirements for each state ( for example, Alabama requires $ 25,000 for bodily injury per person ) .
| STATE | BODILY INJURY (PER PERSON) | BODILY INJURY (TOTAL) | PROPERTY DAMAGE (TOTAL) |
| AL | $25,000 | $50,000 | $25,000 |
| AK | $50,000 | $100,000 | $25,000 |
| AZ | $15,000 | $30,000 | $10,000 |
| AR | $25,000 | $50,000 | $25,000 |
| CA | $15,000 | $30,000 | $5,000 |
| CO | $25,000 | $50,000 | $15,000 |
| CT | $20,000 | $50,000 | $25,000 |
| DE | $25,000 | $50,000 | $10,000 |
| FL | Not required | Not required | $10,000 |
| GA | $25,000 | $50,000 | $25,000 |
| HI | $20,000 | $40,000 | $10,000 |
| ID | $25,000 | $50,000 | $15,000 |
| IL | $25,000 | $50,000 | $20,000 |
| IN | $25,000 | $50,000 | $25,000 |
| IA | $20,000 | $40,000 | $15,000 |
| KS | $25,000 | $50,000 | $25,000 |
| KY | $25,000 | $50,000 | $25,000 |
| LA | $15,000 | $30,000 | $25,000 |
| ME | $50,000 | $100,000 | $25,000 |
| MD | $30,000 | $60,000 | $15,000 |
| MA | $20,000 | $40,000 | $5,000 |
| MI | $20,000 | $40,000 | $10,000 |
| MN | $30,000 | $60,000 | $10,000 |
| MS | $25,000 | $50,000 | $25,000 |
| MO | $25,000 | $50,000 | $20,000 |
| MT | $25,000 | $50,000 | $20,000 |
| NE | $25,000 | $50,000 | $25,000 |
| NV | $25,000 | $50,000 | $20,000 |
| NH* | $25,000 | $50,000 | $25,000 |
| NJ | $15,000 | $30,000 | $5,000 |
| NM | $25,000 | $50,000 | $10,000 |
| NY | $25,000 | $50,000 | $10,000 |
| NC | $30,000 | $60,000 | $25,000 |
| ND | $25,000 | $50,000 | $25,000 |
| OH | $25,000 | $50,000 | $25,000 |
| OK | $25,000 | $50,000 | $25,000 |
| OR | $25,000 | $50,000 | $20,000 |
| PA | $15,000 | $30,000 | $5,000 |
| RI | $25,000 | $50,000 | $25,000 |
| SC | $25,000 | $50,000 | $25,000 |
| SD | $25,000 | $50,000 | $25,000 |
| TN | $25,000 | $50,000 | $15,000 |
| TX | $30,000 | $60,000 | $25,000 |
| UT | $25,000 | $65,000 | $15,000 |
| VT | $25,000 | $50,000 | $10,000 |
| VA** | $25,000 | $50,000 | $20,000 |
| WA | $25,000 | $50,000 | $10,000 |
| D.C. | $25,000 | $50,000 | $10,000 |
| WV | $25,000 | $50,000 | $25,000 |
| WI | $25,000 | $50,000 | $10,000 |
| WY | $25,000 | $50,000 | $20,000 |
* ( Coverage is optional but this is the minimum if you purchase it )
** ( Required if you choose to purchase coverage. If not, you must pay a $ 500 uninsured motorists tip )
For an even more comprehensive look at what your state might require for car policy, be sure to check out your state ’ sulfur department of transportation system web site .
Other coverage options
Aside from express requirements regarding liability, most car insurers will provide five other coverage options. Deciding which ones you want is a matter of personal predilection and factors like how old your car is .
The coverages are :
- Uninsured motorists. Some states require you to be insured to protect against uninsured motorists. This coverage helps you in the event that you get into an accident with someone who isn’t insured and can’t pay for your car repair and/or medical bills.
- Medical costs. If you’re injured in an accident, the insurance company will pay some or all of your medical bills (depending on the coverage and how much the bill is).
- Personal injury protection. Like uninsured motorists coverage, some states require you to get this as a minimum. This pays for any medical expenses or lost wages you might encounter due to a collision.
- Collision. This coverage typically protects your vehicle against collisions with other motorists or objects. Good if you’re prone to accidentally backing up into the mailbox.
- Comprehensive. This coverage tends to cover the whole gamut of things that might happen to your car such as hail, water, and fire damage; if it gets stolen; vandalism; or total destruction. I wouldn’t suggest getting this coverage if your car is already pretty old or isn’t worth much.
I highly suggest you get collision and comprehensive coverage ampere well. Along with liability indemnity, you ’ ll be insured against the likeliest of events that will occur to you and your car .
There ’ s even a beneficial gamble you ’ ll need those policies anyhow if you ’ re leasing your fomite .
so consider your options and decide what you want out of your insurance coverage. once you do that, you ’ ll be ready for step two .
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Step 2: Find your current plan
If you don ’ t have your stream plan in front of you, how can you know how to lower your car policy ?
That ’ randomness why you need to find out what your current policy looks like. Go digging through the boxing glove compartment for it, check your files, or call your indemnity company. This is significant information you can leverage when negotiating with your current policy supplier .
At the very least, you need to know how much you ’ re paying and for what services .
here are the numbers of the most popular car policy providers that you can use to call to find out your policy now .
| Geico: | 1-800-861-8380 |
| AAA: | 1-888-883-8417 |
| Allstate: | 1-877-810-2920 |
| Progressive: | 1-800-776-4737 |
| State Farm: | 1-800-STATE-FARM (1-800-782-8332) |
By immediately you should have your policy in front of you. This includes what type of car indemnity coverage you have adenine well as your deductibles and how much you ’ ra paying in premiums .
You ’ re now ready to begin comparing it with other car insurers .
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Step 3: Shop around
To start, you can use a rate comparer tool such as this one to compare quotes from unlike insurers .
I prefer talking to a rep on the call, though, because they always tell me about other deals that the websites don ’ triiodothyronine propose .
When consulting with a rep or looking up quotes online, be sure to find out how a lot precisely you ’ ll be paying in these two areas :
- Premiums. This is the price you’ll pay for your plan. Typically, insurers offer 6-month and 12-month policies, and provide options for payment plans including paying for coverage all at once, quarterly, or month by month.
- Deductibles. This is the portion you’ll pay out of pocket before your insurer pays the rest.
not many people know this but you can actually lower your premiums by opting for higher deductibles. According to a report from InsuranceQuotes.com, you can lower premiums by 9 % by raising deductibles from $ 500 to $ 1,000 .
This is all a topic of personal preference though. If you ’ re a effective driver and/or don ’ thyroxine typically drive your car much, opt for higher deductibles for lower premiums .
If you ’ rhenium accident prone, drive a batch, or have kids that plan to learn how to drive soon, decidedly choose for the lower deductible .
No matter the character, you should know precisely the coverage you want along with the limits for each. That way it makes everything much simple to compare .
To help keep everything organized, you can use an Excel or Google Spreadsheet .
once you get a few solid quotes, compare them to what you ’ re presently paying. You ’ re going to be able to make a sound argument with your indemnity rep as to why you should get a lower rate once you do .
Which brings us to…
Step 4: Lower your car insurance with this script
now it ’ south finally time to call up insurance reps — including the one you presently have — and negotiate an amazing deal with scripts .
This is the kernel of how to lower cable car policy payments .
Before you do that, though, there are two things to keep in thinker when speaking to a congressman .
- Stay polite — but firm. Don’t just call up the rep and scream, “GIVE ME LOWER CAR INSURANCE!!!!” (I’ve tried, it doesn’t end well.) You need to handle the negotiation with finesse and civility — even if the representative is short with you. Nothing throws a wrench into negotiations quite like pissing off the one person who can help you.
- This is not a win/lose situation. You can’t just make a demand and expect the person to give it to you. However, insurance companies are willing to offer discounts to make or keep high-value customers. Prepare to make your case as to why you’re such a good customer and you’ll see results.
Keep those two things in mind when you call up the spokesperson and I promise you, you ’ ll find a great share .
Renegotiate your current policy
If you already have a car policy policy but just want to negotiate for better rates, use the watch handwriting .
ACME INSURANCE: Hello, Acme Insurance. How may I help you today ?
YOU: I ’ d like to negotiate a policy. [ other policy caller ] is offering to insure me for $ XXX less for [ coverage ]. I ’ d like to know if there ’ s a better deal from you, please.
Read more: Best car insurance companies for 2022
Wait for their answer. Negotiating with this proficiency is much harder to do with car policy companies than banks — but it is possible. If they ’ re refractory and try to shoot you down, keep bid at it. Don ’ t make it easy for them to say no .
ACME INSURANCE: Sorry, but our rates are fixed at this time and we can ’ thyroxine transfer it due to [ some BS excuse about why they can ’ metric ton give you a lower rate ] .
YOU: Well, I ’ ve been a well driver for X years immediately and would love a lower rate. What else can you do to help me ?
ACME INSURANCE: Hmm, one second sir. I see that you ’ re a in truth good customer. I ’ meter going to check with my supervisory program. Can you hold for a second ?
[ detention ]
I was able to check with my supervisor and can lower that policy by X %. Does that work ?
Getting a reaction like that is the best-case scenario. however, there might be the prospect that they deny you a dismiss based on this tactic alone. If this happens, I suggest you do the follow :
- Don’t stop until you get a yes. Persistence is integral in negotiations. If you keep at it and make a strong case, they’ll be backed into a position where they’ll want to give you what you want.
- Try again later. Like the Magic 8-Ball says, sometimes you just have to try again later. If the first car insurance rep keeps shutting you down, thank them for their time, hang up, and dial again for a new rep. This one might be a little more amenable to your suggestions.
- Refocus your negotiations. If they won’t give you a discount because their competitors are offering better rates, don’t worry. There are still other ways to get fantastic deals — which I’ll go into in the next section.
This international relations and security network ’ t the merely way to get a lower car policy rate, though. By asking sealed questions, you ’ ll be able to unlock deals you didn ’ triiodothyronine even know existed .
Negotiate a new policy
You might be searching for your beginning cable car insurance policy always. Or you might be looking to see what ’ s better than your current one .
No matter the case, it ’ sulfur time to start digging abstruse and asking detail questions to uncover the savings these companies have hidden from you. The majority of people won ’ metric ton even necessitate questions like these, so reps will be caught off guard — giving you the advantage .
beginning, you ’ re going to want to start the lapp as above. here it is again .
ACME INSURANCE: Hello, Acme Insurance. How may I help you nowadays ?
YOU: I ’ d like to negotiate a policy. [ other insurance company ] is offering to insure me for $ XXX less for [ coverage ]. I ’ d like to know if there ’ s a better deal from you, please .
If they shoot you down, remember you can constantly :
- Reiterate the fact that you want a better deal and keep persisting.
- Hang up the phone and call back to negotiate with a different rep.
If one indemnity company refuses to budge after three to five calls, change naturally and call a different one on your list. Rinse and repeat until you have a lower insurance policy .
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10 scripts for lowering car insurance
If you get the lower rate — or even if you don ’ triiodothyronine — you can refocus the negotiations and start asking for the hidden deals that many car insurers don ’ deoxythymidine monophosphate tell you about .
here are 10 good scripts to ask to uncover those gems :
- “How much would I save if I insure my car and house with you?” Some insurers will discount you if you insure your house through them as well as your car.
- “What about renewal discounts? What can you offer me as a discount for long-term membership?” Reminding them of the fact that you’re looking to be a longtime customer goes a long way in ingratiating yourself to them.
- “Can I save money by prepaying my entire year up front?” Many insurers will offer huge policy discounts if you prepay for an entire year.
- “Let’s check my car. I know other firms offer discounts for features like anti-lock brakes. What about you?” Not many people realize this, but many car insurance companies will offer better premiums if your car has safety features such as anti-lock brakes, airbags, and four-wheel drive.
- “What kind of low-mileage discounts do you offer?” If you find yourself taking the bus or biking to work more than you ever drive, you might qualify for a low-mileage discount with car insurance companies.
- “If I enrolled in a defensive-driving course, what kind of discount would you offer? Oh, really? Which courses qualify?” Car insurance companies want you to be a safe driver. That’s why some are willing to discount you if you take a course aimed at making you one.
- “What about discounts for my employer? (Tell them the specific name of your employer.)” Some employers partner with car insurance companies in order to get great rates for their employees. Check to see if your company does this.
- “Some insurance companies offer discounts for low-risk occupations (engineers). What kind of competitive rates do you offer?” Insurance companies take a look at many things when it comes to determining your rate — including your employment. After all, a NASCAR driver is probably going to have higher rates than a CPA.
- “Am I paying for roadside assistance? What other additional benefits am I paying for?” Many times, you don’t need certain benefits such as roadside assistance (if you’re in AAA, you already have it). In fact, many credit cards offer roadside assistance as well. Getting rid of these “benefits” could give you a good discount.
- “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%. 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.
Learning how to lower your cable car indemnity seems like a set of work — and it is .
But this is the cultivate that 99.9999 % of people out there won ’ metric ton suffice, which means your returns can be hearty if you do them .
Try some of these tactics out this week and let me know what you find in the comments .
If you ’ re worry about your personal finances, you can improve them without tied leaving your couch. Check out my Ultimate Guide to Personal Finance for tips you can implement TODAY .
Beyond car insurance negotiations
If you couldn ’ thyroxine tell already, I LOVE negotiations — largely because I got it from my parents .
I remember my dad once dragged me with him as he spent an entire workweek negociate at a franchise on the price of a cable car .
After many days of back and forth with our salesperson, they last reached a monetary value they could agree on. BUT as he was literally about to sign the contract, he asked the franchise to throw in some excess floor mats .
They said no .
And he walked aside .
An stallion week ’ s worth of bargaining them down to an fabulously fair price, alone to walk away when they didn ’ t give him something he could have bought for less than 50 bucks at Target .
What ’ south my indicate ? Two things :
- My mom and dad are incredibly Indian.
- You have to be stubborn to be a good negotiator.
I ’ m a big believer that negotiations can open up HUGE savings for you .
That ’ sulfur why I want to give you something that ’ ll help you save and earn more money through negotiations and other prove systems : The Ultimate Guide to Personal Finance .
The money you save on lowering your car insurance is capital, but it ’ sulfur small compared to everything you can save when you optimize your personal finances .
That ’ south why I ’ ve outlined my integral system in this no-BS guide on how to make your personal finances work for you .
And it ’ sulfur all for FREE.
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