Receiving a renewal notice with an increase in your auto or home insurance premium is frustrating and very common in Quebec. Many consumers’ first reaction is to ask: “Can I negotiate my premium with my insurer?”

The short answer is: yes, sometimes… but with important limitations. Here’s what you really need to know before trying to negotiate and, more importantly, what the best strategy is to pay less for your insurance.

Can You Really Negotiate Your Insurance Premium?

Unlike other services such as internet or mobile phone plans, insurance premiums are not freely negotiable. They are calculated using very precise actuarial models based on the level of risk each insured person represents.

In other words, your insurer doesn’t set your price based on loyalty or how long you’ve been a customer, but rather on a strict risk-to-profit ratio that must be respected to remain profitable.

Simply stating that you are considering switching insurers does not guarantee a better price.

The Main Catch: Paying Less… but Being Less Covered

When an insurer agrees to lower a premium, it is almost never without a trade-off. In many cases, the “negotiation” actually involves modifying the policy terms, such as:

• Increasing the deductible
• Reducing certain coverages
• Removing optional protections
• Adjusting insured amounts

The result: the premium goes down, but so does the level of protection. 

This is a critical factor to consider before accepting a lower price.

Why Insurers Can Rarely Lower Prices

Insurance premiums are calculated using complex actuarial models that take many factors into account. For example:

Auto insurance:

• Claims history
• Driving record
• Type of vehicle
• Vehicle usage (work, leisure, mileage)
• Place of residence

Home insurance:

• Reconstruction value
• Year and type of construction
• Type of heating
• Past claims
• Location (flood risk area, urban or rural sector)

If, based on these criteria, your profile represents a higher risk, the insurer simply cannot lower the premium, even if you indicate that you’re thinking about switching insurers.

The Rare Situations Where a Premium Can Be Reduced

In certain specific cases, an insurer may review a premium downward, including when:

• Information on file was incorrect
• An eligible discount had not been applied
• The risk profile has improved (e.g., installation of a security system)
• The insured qualifies for a group discount, such as through:
  • a professional order
  • an alumni association
  • a union or professional association

These adjustments are still limited and rarely enough to offset a significant increase at renewal.

Why It Works in Telecom… but Not in Insurance

In the telecommunications industry, when a customer threatens to switch providers, companies can often offer discounts to retain them. Even at a reduced price, the customer usually remains highly profitable.

In insurance, this logic applies far less. If an insured is deemed too risky based on actuarial calculations, keeping them at a discount can become unprofitable, or even risky for the insurer.

That’s why threatening to switch insurers rarely leads to a significant premium reduction.

Big Increase? Changing Insurers Is Often the Best Solution

If your premium increases significantly at renewal, the most effective strategy is usually not to negotiate, but rather to compare offers from multiple insurers.

Each insurer evaluates risk differently. A profile considered less favorable by one insurer may be much better priced by another.

Why Use ClicAssure to Compare Your Insurance

This is exactly where ClicAssure stands out.

• One single quote request to compare offers from many insurers
• Over 120 partner insurers
• Simple, fast, and no-obligation comparison
• The best tool in Quebec to increase your chances of finding the lowest insurance premium

Instead of accepting an increase or reducing your coverage to pay less, ClicAssure lets you compare intelligently and find a better price with equivalent protections.

In Conclusion

✔️ Yes, it is sometimes possible to adjust a premium
❌ But rarely without reducing coverage
✅ In the case of a significant increase, comparing and switching insurers is often the best solution

Before accepting an increase or modifying your coverage, take a few minutes to compare your auto and home insurance with ClicAssure. It could help you save money without compromise.