As a consumer, it is easy to believe that you have to pay the rate that is initially offered for an auto insurance policy. But did you know that this is not 100 percent true? Just like buying a car, you may be able to negotiate a better deal.

Tip: if you don’t attempt to negotiate your auto insurance rate you will never know if you are in position to save money.

Here are five steps to take if you are ready to negotiate your rate:

1. Contact Your Agent

Many people are tempted to call the toll free number associated with their auto insurance company. While this will get you in touch with a customer service representative, it is not going to do you much good in terms of negotiating your rate. Instead, you need to contact your local agent. This is the person with the power to help you save.

2. Don’t be Afraid to Express Your Opinion

It is one thing to deal with an auto insurance rate increase every so often. However, if this becomes commonplace you are soon going to realize that you need to make a change.

Don’t be shy about sending a letter to your agent, letting him or her know that you are dissatisfied with the increase and may begin to look elsewhere for coverage.

3. Discuss All Your Options

You don’t have to immediately threaten to change companies. You should first discuss all your options. This means explaining to your agent that other companies are offering the same level of coverage at a lower price.

Tip: don’t simply say that you have received quotes from other providers. Make sure you actually do this so that you can back up your claims with solid facts and figures.

4. Discounts, Discounts, and More Discounts

Right now, you may not be receiving all the discounts that you qualify for. If you mention this to your agent, you may be surprised to find that he or she locates at least one more discount that can be applied to your policy. In turn, your rate is going to immediately decrease.

5. Does Loyalty Count For Anything?

If you have been a loyal customer, year in and year out, it should stand for something. Agents love customers who will continually stick with them, year after year. If you have been a customer for five years or longer, make sure you mention this when negotiating for a lower prate. This should carry some weight.

Final note: Don’t make threats that you are not willing to back up. If your insurance company is not willing to negotiate, it is time for you to walk away and consider other providers. Remember, this is  competitive industry. There is no contract in place, holding you hostage to a particular company. Feel free to shop around for a better deal.

By following this advice, you will find yourself negotiating with your agent in hopes of lowering your premium. You may not be successful, but it is definitely worth a try.