Renter’s insurance is becoming increasingly popular as renters begin to realize that they need to protect their homes. The problem is that even though it is responsible to take out insurance, it creates yet another bill for you to pay every month. Fortunately, however, you can negotiate a low rate on both car and renter’s insurance.

How to Negotiate a Low Rate on Car and Renter's Insurance

Benefits of Bundling:

You might have heard of “bundling,” which is lingo for “throw a bunch of products together to get a better deal.” People have been doing it with their cable, Internet and phone service for years, and now most insurance companies offer lower rates on their policies if you hold more than one.

If you both rent a home (or apartment or other dwelling) and own a car, you can negotiate a low rate on car and renter’s insurance by combining them on one policy, according to Financal Web. It helps the insurance company because they get your business for two products, and it helps you because combining them results in a lower rate.

Of course, in order to do this you will need to find an insurance company that offers both car and renter’s insurance. This isn’t difficult, as most national and many local companies offer both of these services. If renter’s insurance is not advertised on the company’s web site, you can always call and inquire.

The Negotiation:

Many consumers are terrified of negotiating, whether they are buying car insurance or a new mattress. If you don’t feel confident, you can always visit your insurance agent with a friend who can provide moral support (and remind you of questions you forgot to ask).

To negotiate a low rate on car and renter’s insurance, you need to make it clear up front that you intend to bundle the services. Explain that you would be happy to give the agent your business, but that you’d like a discount for insuring both your home and your vehicle.

In most cases, the insurance company will already have established a program for reduced rates on bundled products. If this is true, the agent will do most of the work for you. However, make sure you negotiate the lowest possible rate by asking about other discounts and incentives, such as Good Driver discounts and reduced premiums for having a security alarm installed in your apartment.

The Details:

When you negotiate a low rate for both car and renter’s insurance, make sure you give the agent as much information as possible. List all security devices on your apartment and vehicle, be honest about past tickets and accidents, and provide an accurate estimate of the value of your belongings. This will help move things along and will ensure an accurate quote.