Should You Follow These 2 Dave Ramsey Tips for Saving on Homeowners or Renters Insurance?

If you're buying insurance, you should check out this advice.

If you buy a property, you need to protect both the home and your assets within it. If you are a renter, you still need to protect all the stuff you keep in your apartment and you also must protect yourself against liability if someone is hurt in your space.

That's why it's so important to buy homeowners insurance or renters insurance. The premiums for these policies can be a hit to your budget, though. The good news is, finance expert Dave Ramsey offered two tips for saving on coverage costs. The big question for owners and renters, however, is whether these tips are worth following.

Here's what Ramsey suggests doing to save on insurance as well as some advice on whether you should follow his recommendations.

1. Ramsey recommends changing insurance agents

Ramsey's first recommendation is to talk with an independent insurance agent about your coverage options to make sure you have the most affordable policy.

"Most people set up their insurance and leave it until they move," Ramsey said. The problem with this approach is that there may be cheaper insurance options out there from other companies that offer equally good coverage but at a lower price point. Ramsey believes an independent insurance agent could help you find out if there is indeed a better deal out there.

"They'll shop around until they find the best fit and rate for where you are in life. You can save hundreds a year with minimum effort," he said.

Ramsey is right that independent agents do this. And if you don't have a lot of time or aren't very knowledgeable about shopping for coverage, there's nothing wrong with getting help from an agent to compare your options. In fact, agents will not charge you a fee for this service so you don't have to worry about whether the cost of getting assistance is worth it.

Of course, you can also shop around for insurance coverage on your own to see if you're paying the fairest price. Whether you work with an agent or go the DIY route is really a matter of personal preference in most cases. The important thing is that you shop around and compare homeowners and renters insurance prices regularly to avoid overpaying for a policy.

2. Ramsey also advises picking a policy with a higher deductible

Ramsey also advises raising your deductible to save on premiums. That's the out-of-pocket payment you'd have to make toward a covered loss before insurance kicks in.

"Insurance policies with higher deductibles have lower premiums -- meaning they cost you less monthly," Ramsey said. "Of course, you'd have to pay more in an emergency, so wait to raise that deductible until you've got your fully funded emergency fund in place to cover anything that -- God forbid -- comes your home's way."

This advice can make sense as well if you are confident you could pay the cost of a higher deductible out of pocket. If you would struggle to come up with the cash, this may not be a good way to save on insurance premiums. The last thing you want is to worry about where you'll get thousands of dollars after a disaster.

Both of these techniques can definitely give you a good chance to save on insurance coverage options, though, so as long as you try them with both eyes open, listening to Ramsey could indeed end up saving you some cash.