If you’ve never visited a country with “haggle culture,” there’s nothing quite like it.
You haggle down the price of a souvenir and walk away surprised at just how low you got the price … only to be even more shocked when you find out that if your negotiation skills were on par with the locals, you could’ve whittled the price down by half again.
You don’t always come out ahead, but it’s an exciting experience; my mother, who has visited roughly 70 countries, has long instilled in me the merits of bargaining. And even in the U.S., which generally has little haggle culture of which to speak, you can still put bargaining skills to work to improve your finances.
Let’s look at some bills, services, and other common costs that can be haggled lower, and the best strategies for a successful negotiation. A few phone calls might be all it takes to lower some of your monthly expenses, and a “please” and “thank you” could be the key to eliminating a few frustrating fees.
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Unexpected Costs That Are Open to Negotiation
Most people know that you can haggle the price of a car. But did you know you can negotiate car insurance?
In fact, you’d be surprised at just how many products and (especially) services you can whittle down with the gift of gab … and, where you have it, using a little leverage.
Here’s a look at different costs you can sometimes negotiate lower, as well as the best approaches to take.
1. Auto Insurance
Let’s start with a negotiable expense I’ve successfully haggled myself: auto insurance.
When I went to insure my current car, I contacted multiple auto insurance companies for quotes. I wanted better coverage for a cheaper price, so I contacted my top choice and told them I’d prefer to work with them because of their well-known customer service, but that I was given much lower quotes from other providers. I shared screenshots of a competitor’s quote to show the difference.
Ultimately, if they couldn’t lower their price, I told them I would have to go with a more affordable option. While my car insurance provider wasn’t able to completely match the other quote, they both reduced their rate offer while adding more coverage.
A couple of years later, when they tried to increase my rate, I explained that I work from home and therefore have very low mileage. Lo and behold, I learned they have a low mileage discount (that they had never mentioned before), and with that discount applied, my rate would be held level rather than increasing.
Simply put: Auto insurance is highly negotiable.
Related: 10 Frugal Habits That Make Retirees’ Lives Better
2. Rent
Rent is typically one of the largest expenses, if not the largest expense, in a monthly budget. So it’s certainly worthwhile to at least try to negotiate.
New renters might be able to negotiate a lower monthly payment in exchange for signing a longer lease. For example, if you’re a college student and know you’ll be in the same city for several years, or if you’re a project worker with a multiyear contract, you might consider asking whether a two-year contract would come with better terms than a one-year contract.
Existing tenants facing a rent increase may have some leverage as well. In the past, a roommate and I were already planning on leaving a house rental; so when we were informed that our rent would be increasing, my roommate took the opportunity to mention we wouldn’t be renewing our lease. The landlord quickly responded that if the rent increase was the reason why, he could go back to our old rate—he knew we were good tenants, but he didn’t know whether replacement tenants would be.
Sometimes, however, a landlord won’t offer any wiggle room, especially when there’s a housing shortage. Still, it can’t hurt to ask.
Related: 10 Senior Discounts for Restaurants + Grocery Stores
3. Cable + Internet Bills
Cable and internet bills have a way of starting low and then climbing much higher later. Often, you start with a “new customer ” or “introductory” price that might last for a couple of years … but one the promotion ends, your costs jump substantially.
However, if you call, the company might at least temporarily put you back at the introductory rate, or look for new promotions to put you under. Sometimes, you might need to threaten to cancel if they can’t lower the rate—cable companies especially are having difficulty retaining let alone acquiring new customers, so you have an advantage.
You might need to call again every year, too, but one phone call is typically worth the savings.
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4. Cell Phone Bills
Similarly, cell phone companies strive to keep their current customers whenever possible. While there aren’t many competitors in the space, the market is also saturated, so cellular providers try to reduce churn as much as possible.
One strategy to negotiate your cell phone bill is to say you’ve been shopping around and see more competitive pricing, but would prefer to stay loyal to them if they can offer something comparable.
You can also ask if they offer reduced rates for certain groups of people. Sometimes, cell providers offer discounts for seniors, students, teachers, or service members. These discounts aren’t always widely advertised, so it’s worth asking about them. You should also inquire about whether the company has any plans not listed online.
Related: Seniors Can Save With These 10 Discounted Memberships + Subscriptions
5. Medical Bills
Medical debt is the most common driver of bankruptcy in the U.S. Even with health insurance, out-of-pocket medical costs can be crippling.
Fortunately, medical bills can be haggled both before and after treatment.
Before treatment, you might be able to ask about different, more affordable treatment options or see if paying upfront as a lump sum lowers the cost.
Of course, even if you haggle ahead of time, you could still be hit with an alarmingly high bill. That’s OK—you can even negotiate medical bills after they have been sent to collections.
Related: Average Early Retirement Health Insurance Premiums
6. Some Bank Fees
While it’s smarter to use financial institutions than to keep all of your money in a shoebox, bank fees—including overdraft fees, wire transfer fees, and monthly maintenance fees—could certainly dissuade at least a few would-be users.
After all, no one wants to get nickeled-and-dimed for moving around their own dollars.
Some banking fees are negotiable, however. For example, let’s say your account balance accidentally dipped below zero because your paycheck cleared late. Although the problem was quickly remedied, you were charged an overdraft fee. Often, if you ask your bank to remove the fee because it was a one-time mistake, they will do so.
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7. Credit Card Fees
Credit card fees are similarly annoying. Credit card companies charge businesses every time you swipe, but that doesn’t mean everything is fee-free on your end. Some of the credit card fees you might be expected to pay include an annual fee, foreign transaction fees, balance transfer fees, and late fees.
While some of those fees are strict, you can haggle others away. Credit card users can sometimes get their annual fees delayed by an extra year. And if your late fee is a first-time offense, you can often get that fee removed with a quick call to your credit card issuer or bank.
Related: Does Your Credit Score Matter in Retirement?
8. Vacation Rentals
Going on vacation? You might be able to get your vacation rental at a more affordable price.
Let’s say you want an Airbnb for a lower cost. Sometimes if you contact a host and ask them if they can lower the rate, they will do so—especially if you’re booking relatively close to the expected stay date and haven’t yet sold the room/home.
It won’t always work—if you’re attending the Super Bowl and trying to negotiate prices in that city for the night, demand will be too high for you to have any negotiating power.
I’ve also heard of people successfully negotiating lower rates for long stays of several weeks or a month. Think about it: If a renter typically only gets bookings for, say, four out of every seven days, but you could fill up all vacancies for a month, that’s money they otherwise wouldn’t be seeing—even if they lower your rate a little in return. Plus, it means they only have to hire out cleaners once as opposed to several times.
Related: 8 Ways Travel Can Be More Expensive for Senior Citizens
9. Private School Tuition
Do you want to send your child to private school but can’t afford the expensive tuition? You might be able to haggle this cost lower, too.
To start, you can simply ask if a lower price is possible. If all of the school spots aren’t filled or your child is highly desirable as a student, they might be willing to offer reduced tuition.
Alternatively, a discount might be available if you pay up front. If you have multiple children attending the school, they might have some wiggle room, too. You even might be able to exchange useful services for discounted tuition, such as volunteering to host fundraisers for a few weekends each year.
Private schools ultimately are businesses, so don’t be afraid to break out negotiation tactics.
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Related: 20 Junk Fees We Hate Paying [And How to Avoid Them]
10. Home Maintenance
Home maintenance and repair workers often set their own rates, which means there is room to haggle. You have more leverage if your work doesn’t need to be done immediately and you instead have a flexible timeframe. Workers might be able to offer you a discount if the work is done during the offseason or if they have gaps in their schedule.
Some professionals will also offer a discount if you pay in cash. But if you do this, have an airtight contract in place and ensure you get a receipt for your payment.
Related: 10 Home Improvements That Don’t Pay Off
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