Is it possible to reduce insurance premiums?
- Insurance is a critical purchase that provides essential protection.
- Premiums can be costly 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 car insurance, home insurance, or life insurance. And many people need multiple types of coverage to protect different assets and support loved ones in the event of an untimely death.
Unfortunately, purchasing insurance coverage can be expensive, especially for consumers who are at risk of insuring for a variety of reasons (such as teenage drivers) or for people who need multiple types of protection.
The good news, however, is that there are techniques policyholders can use to save as much as possible without compromising the protection that insurance should provide. In fact, financial expert Dave Ramsey has recommended a key step that all consumers should take when it comes to paying the lowest possible price for their insurance. Here is what it is:
This advice from Ramsey can potentially help consumers save a fortune on insurance coverage
According to financial 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 reevaluate their policies. As a result, “they might miss out on new discounts that apply to where they are right now in life.”
Insurance costs can change for a number of reasons, including lifestyle changes such as getting married, moving to another vehicle, or a teenage driver getting good grades. And different insurers may also change the price of their premiums or offer new discounts that they did not offer before.
Consumers who stick to the status quo may not know that there is a more affordable option than their current policy. They could find themselves paying unnecessary extra premiums for years when simply exploring different coverage options could have saved them a fortune.
How Ramsey thinks consumers should shop for insurance coverage
Ramsey suggests consumers work with an independent insurance agent to review the types of insurance available and the costs of coverage that apply to their situation.
Independent agents do not work for a particular insurer, but rather have a network of different companies that they work with. When a consumer visits an independent insurance agent, the agent can compare the policy to all the different companies they work with to find the best deal.
While this approach can sometimes save time and make it easier for people to compare their coverage options, it’s not necessarily the right decision for everyone, especially since it’s now easy for the person way to get insurance quotes online.
Although independent agents may have a large network, some affordable insurers may not be part of it and consumers may miss opportunities. By purchasing quotes independently online, consumers can decide specifically which insurers they want quotes from and can have more control over the process of finding the right coverage for them, rather than leaving that process to someone outside.
But whether a consumer is using an independent agent or purchasing a policy themselves, the important thing is to follow Ramsey’s advice on the importance of periodically reviewing coverage options. Consumers who don’t could end up paying more for less.
Providing peace of mind for life’s moments
Insurance isn’t something we often think about until we need it and that usually means you don’t spend a lot of time researching what’s best for you and your personal situation. Taking the time to learn about the basics of insurance, whether it’s how to get discounts on your home insurance policy or the best way to get a car insurance quote, will help you save money and ensure you have the right insurance coverage for your needs. .