Can you negotiate car insurance?

Not sure if you’re getting the best deal from your car insurance provider? Before making the switch completely, find out if you can negotiate a better deal. 

Not sure if you’re getting the best deal from your car insurance provider? Before making the switch completely, find out if you can negotiate a better deal. 

Daniel Hutson
From the Motor team
minute read
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Posted 20 APRIL 2021

Can you negotiate car insurance?

Yes, absolutely. If you feel as though your provider could offer you a better deal, there’s no harm in asking.  
It’s a fact that insurance providers tend to offer the best deals to new customers. An interim report by the Financial Conduct Authority published in October 2019, said: “Insurers often sell policies at a discount to new customers and increase premiums when customers renew, targeting increases at those less likely to switch.” 
The report added: “Many consumers who switch or negotiate their premium can get a good deal.” 
If you’re a loyal, existing customer, you could be losing out if you don’t ask for a discount.  

How to negotiate car insurance?

You can just ring up and ask – but for the best chances of improving your car insurance policy, it’s a good idea to be prepared. 

  • Check how much you’re currently paying and what your policy covers.
  • You can also check how the cost of your policy has changed over the past couple of years, if you’ve been a loyal customer for a while. 
  • Compare prices from other providers using the same policy cover as you have now. 
  • Be sure to look for things like cashback deals and any add-ons you may need, then factor those into the total cost. 

When you’ve got an idea of what you could get by switching provider, you can use this as leverage in your negotiations. 

  • Contact your provider and ask to discuss your policy.
  • Start by letting them know that you’ve found a better deal (but only if you have actually found one) and you’d like to know if they can match or better it. 
  • If you’ve found a fantastic introductory offer for new customers with your current provider, you can ask if it can be applied to you, too. 
  • Explain the details of the new deal you’ve found. 
  • See what the response is – often your provider will be keen to give you a discount in exchange for you staying with them. 
  • If they can’t match or better it, ask if they could add on any extras for free – i.e. windscreen cover. 

When’s the best time to negotiate your policy?

You’re in the strongest position when your policy is coming up for renewal. Instead of just auto-renewing, contact your provider to discuss your renewal cost and try negotiating for a better deal. 
Often, some of the best deals will be available three weeks before your renewal, so this is also the best time to shop around. To make things even easier, AutoSergei™ will do the hard work for you – he’ll let you know when there’s a better deal before your next renewal. 

What if my car insurance provider won’t budge?

If you can’t get the discount you want on your policy, don’t be afraid to switch providers – Just make sure you leave enough time before your renewal so you don’t have a gap in coverage – and make sure you’ve factored in any cancellation costs if you’re wanting to switch part-way through your current policy.

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