Reader’s Question:

I let my old insurance plan expire two weeks ago, since I swapped in my old car for a brand-spanking new one. I called up my insurance company, but the auto car insurance quotes that this agent’s been offering me have an outrageously high premium! I’ve been with this company for a couple of years now, and I don’t want to switch companies, but the new premium they’re asking for me is just way too high. Is there any way for me to negotiate with him to lower it?

Jane

Denver, CO

That’s strange… you should actually be getting a discount on your auto car insurance quotes rather than it getting raised, since you’ve been a loyal customer. If you’ve gotten into accidents in the past, especially if you’re at fault, then your premium would definitely go up.
But if you’ve been in no accidents in the past, your agent may be pulling one over you. They may have inserted extra coverage in the new policy they’re offering you, so you may have to check your contract clearly. The more coverage you get in a plan, the more you’re going to have to pay.

If that doesn’t work, you may want to consider raising the deductibles from your plan. That means you’ll get a lower premium, but you’re going to have to fish more money out of your pocket if you do get into an accident in the future.

One last tactic you could use would be to get auto insurance quotes from rival insurance companies and present them to your agent. The usual reaction would be to lower their offer to match that of their rivals.