Dave Ramsey recommends shopping for new car insurance in these 6 situations

A teenage girl in the driver's seat of a vehicle with a parent seated as a passenger.

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Buy car insurance Important to protect against asset loss and comply with the law. But while motorists may assume they can buy coverage once and never think about it again, that simply isn’t the case. In fact, it’s important to shop for coverage periodically.

Specifically, there are six situations in which financial expert Dave Ramsey believes motorists should shop to see if switching insurance makes sense. This is what they are.

Six cases to search for new car insurance coverage

Ramsay suggests shopping and comparing auto insurance policies under the following six circumstances:

  1. after moving
  2. After buying a new car
  3. after marriage
  4. after divorce
  5. After adding a teenage driver to politics
  6. After the death of a loved one who was on politics

There is an important reason Ramsay suggests that these life events should lead to a comparison of insurance options. “Sometimes the big events in life affect your premiums — and the company that used to give you the best deal no longer is,” Ramsay explained.

How to shop for new insurance

While it may seem difficult to add shopping for car insurance to your list of things to do after experiencing a major life change such as a move or divorce, the truth is that it is very easy to check out what options are available.

Consumers shopping for a policy can check their current coverage to make sure it is adequate and that additional protection is not needed. “Checking your current policy now will help you know what to look for when you start shopping for a new one,” Ramsay explained. “After all, it’s kind of hard to shop for something when you don’t even know what you need.”

After checking current coverage, drivers should consider what types of asset protection they need and whether they should add additional types of auto insurance, such as collision insurance or more liability coverage. Ramsey recommends getting at least $500,000 in liability protection, although the minimum required by the state is much lower.

Armed with information about what Types of insurance To purchase, consumers can compare quotes from several insurance companies online very quickly. It’s easiest to do with the vehicle’s VIN number, as insurance companies can automatically look up a lot of information about the vehicle when drivers provide this identification number. Drivers shopping for coverage must have details about their accident history as well as the driving history of others the policy will cover.

After getting quotes for coverage from about six to 10 insurance companies, motorists can decide which company will provide all the coverage currently needed to get the best possible rate.

Some motorists will find that this is a different insurance company than before if they are comparing coverage after the major life events Ramsey mentioned, while others may find that sticking with their current insurance company makes sense after all. The only way to know if a change is required due to changing life circumstances is to do a comparison shopping exercise to explore all the options available.

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