Hints on negotiating insurance like a pro

If just the thought of having to talk about insurance stresses you out, then be sure to keep reading. In a few moments, you'll know exactly what you have to do to negotiate insurance for your home and car like a pro. You (and your wallet) are going to feel so much better.

The Insurance Bureau of Canada (IBC) urges all consumers to shop around before signing a car or home insurance policy. But why should you waste hours of your precious time asking for insurance quotes right, left and centre? Because the market is competitive to the point where you could save hundreds of dollars just by taking the trouble to call three or four insurers.

To negotiate insurance at the best price, you have to compare apples with apples. If the premium you’re being offered by one insurer is much lower, be sure to check that the protection given with the suggested insurance coverage is the same as other insurers are offering.

By making use of the following tips, you can reduce the cost of your insurance by a significant amount, no matter what type of insurance you’re looking for.

• Combine your car and home insurance with the same insurer.
• Increase the amount of your deductible. The deductible is the amount you pay in the event of a claim.
• Install alarm systems in your car and home.
• Sign a two-year contract (rather than one year).

Let's be clear on this point: lying just isn’t a good idea when negotiating insurance. Quite the opposite is true. Deliberately omitting to report certain incidents—such as the water damage in the basement last spring or the collision you had a few months ago—could cost you. If your insurer discovers the truth when you make a claim, not only would you run the risk of having to pay a heavy penalty and not getting an insurance payout, you might void your whole insurance policy. You could also have huge difficulty finding other insurance.

Have you been with the same company for several years? Loyalty is often rewarded. Be sure to ask about loyalty discounts you may qualify for. The same thing goes if you’re a senior, as you may be able to obtain some very interesting discounts if you ask.

Don’t forget that you should still shop around a bit when it comes time to renew your insurance. It's a habit to learn and hang onto. Yes, it may involve a bit of effort the first time around, but when you realize that you’ve just saved $100, $200, or even more, it’s a sure bet that you’ll be won over to the idea of negotiating insurance.