Dave Ramsey’s 3 Tips for Changing Car Insurance the Easy Way

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Don’t buy new car insurance without following these tips.


Key points

  • Changing car insurance can sometimes help drivers save money.
  • It can be difficult to switch to a different insurance policy, but Dave Ramsey has some tips to help make the process easier.
  • Drivers should check their requirements and ensure that the new policy is installed before removing the old one.

Changing car insurance can be difficult, but it doesn’t have to be. Dave Ramsey has tips on how to easily switch policies – which can save you a lot of money if another insurer offers the same or better rates.

Drivers considering making the switch should check out these tips from Ramsey, who he says will make the new policy “as easy as waving a magic wand.”

1. Determine what types of coverage are needed

There’s a simple reason Ramsey explains that checking the types of coverage needed should be the first thing drivers take if they want to make the insurance transition easier.

“Most people don’t know how to change their car insurance because they don’t really know what they need to buy,” he said. To find out, he advised that drivers should first check what they have and check each type of safety feature so they can decide if it is needed.

For most people, Ramsey believes it is important to have $500,000 in debt settlement to pay for damages that have been done to others. They also recommend collision insurance to pay for repairs or replacements to the driver’s vehicle, as well as full coverage for any accident-related issues involving the driver’s vehicle.

Ramsey also suggests considering the size of the insured’s deductible, which is what the policyholder must pay out of pocket when a covered loss occurs before the insurer picks up the tab.

“Having a high deductible means you pay more for repairs if something happens to your car, but you pay less monthly. Unless you’re in a lot of accidents, it’s better to have a higher deductible to save a little money every month,” said Ramsey. .

2. Consider working with an insurance agent

Once you’ve decided how much coverage to buy, the next step in changing insurance is to compare offers from many different agencies. Ramsey recommends looking at six or 10 insurance companies to see which one offers the best price.

While this can be done online, Ramsey believes it’s best to work with an insurance agent. He says they are “experts in how to change car insurance,” and can do a way to compare consumer records.

Finding an independent agent who can take quotes from multiple insurers is not a problem – especially for people who are busy or don’t enjoy shopping around. Of course, it’s not really necessary, because it’s also easy to get a quote from an insurance company online.

3. Install the new policy before deleting the old one

Finally, Ramsey has some important advice to ease the process of changing auto insurance. “Before you go hunting for your old insurance, make sure your new policy is up and running,” says Ramsey. And they’re also urging drivers to make sure they “print your new car IDs and put them in the glove box in case you need them!”

This can help motorists avoid legal trouble that may arise if there is a discrepancy between canceling the old policy and purchasing a new one.

By following this advice, it becomes easier to switch insurance policies – which opens the door to savings when the new company offers a cheaper plan than the insurer is offering.

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