3 Dave Ramsey Tips for Switching Car Insurance the Easy Way

by Christy Bieber | Published on Sept. 9, 2022

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A smiling woman sitting in the driver's seat of a car.

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Don't shop around for new car insurance without checking out these tips. 


Key points

  • Switching car insurance can sometimes help drivers save money.
  • It can be a hassle to change to a different insurer, but Dave Ramsey has tips to make the process easier. 
  • Drivers should assess their coverage needs and ensure the new policy is in place before canceling the old one. 

Changing car insurance can be a hassle, but it doesn't have to be. Dave Ramsey has some tips on how to easily switch policies -- which could potentially provide significant financial savings if a different insurer offers cheaper premiums for the same or better coverage.

Drivers who are thinking about making a change should check out these tips from Ramsey, which he says can make getting a new policy "as easy as waving a magic wand."

1. Figure out what types of coverage are necessary

There's a simple reason why Ramsey explains that exploring the types of coverage needed should be the very first step drivers take if they want to make the process of changing insurers easy. 

"A lot of people don’t know how to switch car insurance because they don’t actually know what they need to buy," he explained. To figure this out, he suggested that drivers should first look at the current coverage they have in place and should then research what each type of protection is so they can decide if it is necessary. 

For most people, Ramsey believes it is important to have $500,000 in liability coverage to pay for damage done to others. He also recommends collision insurance to pay to repair or replace the driver's own vehicle, as well as comprehensive coverage to pay for any non-crash-related issues affecting the policyholder's car. 

Ramsey also suggests considering the size of the insurance deductible, which is what the policyholder has to pay out of pocket when a covered loss happens before an insurer starts picking up the tab. 

"A high deductible means you pay more up front for repairs if something happens to your car, but you’ll pay lower monthly premiums. Unless you’re super accident-prone, it’s worth having a high deductible to save a little cash every month," Ramsey said. 

2. Consider working with an independent insurance agent 

After deciding how much coverage to buy, the next step to switching insurance is to compare policy offerings from lots of different providers. Ramsey recommends checking six or even 10 different insurers to see which offers the best price.

While this can be done online, Ramsey believes it's best to work with an independent insurance agent. He says they are "experts on how to switch car insurance," and can do the process of comparing quotes for consumers.

Finding an independent agent who can get quotes from many insurers isn't a bad idea -- especially for people who are busy or who simply don't enjoy the process of shopping around. Of course, it's not strictly necessary though, since it's also pretty simple to get quotes from insurers online too. 

3. Put the new policy in place before canceling the old one 

Finally, Ramsey has some other important advice to simplify the process of switching car insurance. "Before you go scampering off to cancel your old insurance policy, make sure your new policy has taken effect," Ramsey says. And he also urges drivers to make sure they've "printed your new vehicle ID cards and put them in the glovebox in case you need them!"

This can help motorists avoid legal trouble that could come if there was a gap in coverage between canceling the old policy and buying a new one. 

By following this advice, it becomes easy to change insurers -- which opens up the door to saving on coverage when a new company offers a cheaper policy than the current insurer is offering. 

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