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Is it possible to reduce premiums on insurance?
Key points
- Insurance is a crucial purchase that provides essential protection.
- Premiums can be expensive on policies.
- Finance guru Dave Ramsey recommends reviewing your coverage to save money.
Insurance premiums are an essential expense that most consumers incur. In fact, almost everyone needs some type of insurance, whether it’s auto insurance, home insurance, or life insurance. And many people need multiple coverage types to protect different assets and provide for loved ones in case of an untimely death.
Unfortunately, buying insurance coverage can come at a high cost — especially for consumers who are risky to insure for various reasons (such as teen drivers) or for people who need lots of different kinds of protection.
The good news, though, is that there are techniques policyholders can use to save as much as possible without compromising the protection insurance should provide. In fact, finance expert Dave Ramsey has recommended one key step that all consumers need to take when it comes to paying the lowest price possible for their insurance. Here’s what it is:
This Ramsey advice can potentially help consumers save a fortune on insurance coverage
According to finance expert Dave Ramsey, the best thing most people can do to save money on insurance is to regularly review their coverage options.
As Ramsey explained on his blog, millions of Americans never re-evaluate their policies. As a result, “they could be missing out on new discounts that apply to where they’re currently at in life.”
Insurance costs can change for a number of reasons, including lifestyle changes such as marriage, a switch to a different vehicle, or a teen driver getting good grades. And different insurers can also change their premium prices, or could offer new discounts they didn’t provide before.
Consumers who just stick with the status quo may not be aware there is a more affordable option out there than their current policy. They could find themselves needlessly paying extra premiums for years when simply exploring different coverage options could have saved them a fortune.
How Ramsey believes consumers should shop around for insurance coverage
Ramsey suggests consumers work with an independent insurance agent in order to review the types of insurance available and the costs of coverage that apply in their situations.
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