4 Ideas for Negotiating an Insurance Policy

Most consumers today will have several different insurance policies, which can include auto, home, life, and medical policies. While these can be significant expenses to pay each month, there are four tips that can be followed, which may help you to receive a lower rate and get a better policy.

Understand the True Costs of the Policy
Before you can even start negotiating an insurance policy, you first need to understand the true cost of the policy that your are considering. Insurance policies often come with a base cost, which is known as the premium. However, there are often a range of other hidden fees and costs that you may not be aware of until it is too late. It is important that you properly read all of the documents, understand the potential for increases in the policy year, and ask plenty of questions.

Know the Laws and Requirements
When you are looking to negotiate with your insurance company, it is also important that you understand the basic laws and requirements that you are subject to. Due to state laws, federal laws, and lender requirements, many consumers are required to carry a variety of different policies. However, in many cases consumers end up paying for too much coverage, which is well beyond the base requirements and needs. To negotiate a policy, you first need to understand the minimum amount of coverage, which could help start the rate negotiations.

Receive Multiple Quotes
Similar to many other types of negotiations, it is also important that you receive as many quotes as possible . Insurance companies tend to follow similar underwriting methods when it comes to writing policies. However, they may price certain policies higher in order to turn a profit. One of the best ways to negotiate is to get a copy of a policy offer and use it as leverage against another insurance company. This can make insurance providers more lenient in negotiations in order to win business.

Combine Policies
When you are looking to negotiate into a lower policy cost, it would also be helpful to try and combine as many policies as possible into one larger policy. Insurance companies are almost always willing to provide a multi-policy discount to consumers that combine their home, auto, and other policies together. Negotiating this with the insurance provider will help to reduce your overall rate on all policies by a considerable amount and will make you appear to be a more valuable client.