Save Money With These Insurance Options

from daveramsey.com on 26 Jul 2012
 

Dave always recommends you work with an independent insurance agent or broker when you’re shopping for insurance. Independent agents work with several insurance providers, so they can offer you more choices than an agent who works for only one company.

More choices often mean better prices. But how much can you really save with an independent agent?

How about $1,365 a year—just for starters?

That number is based on comparing real auto and home insurance quotes gathered from big-name insurance companies to real quotes from an independent insurance broker. We also have a money-saving option for health insurance. Here’s the breakdown of savings;

Real Quotes for Real Life

All our quotes were based on a 25-year-old woman named Ima Insure. She’s a non-smoker in good health, and she owns her own home. She also owns a 2008 Camry and has a good driving record. Ima’s name may be made up, but her stats are as real as it gets.

Auto Insurance – Now it’s time for Ima to shop for coverage on her Camry. At one big-name auto insurer, she would pay $126 per month. But our independent agent found five policies for less than that, starting at $100 per month. We checked another online insurance company that claims to save its customers an average of about $500. But their insurance would have cost Ima nearly $300 more per year.

Homeowner’s Insurance – Quotes for homeowner’s insurance were closer, with only about $45 difference between the larger firm’s price and the lowest price our broker provided in an apples-to-apples comparison. But our broker also gave Ima quotes for three other policies with higher premiums she could check out.

The HSA Option – Ima can find her biggest savings by switching to a high-deductible health insurance plan combined with a health savings account (HSA). The higher deductible, $1,000–3,000 for individuals and $2,400–6,000 for families, translates to a lower monthly premium.

Ima can funnel her savings, $85–100 per month, into her HSA to cover costs until she meets her deductible. Individuals can save up to $3,100 a year and families up to $6,250 in their HSAs. Contributions are tax-deductible, and the funds can be used tax-free to pay for qualified medical expenses. An independent insurance broker can help Ima compare policies and find the coverage she needs.

Ask an Expert and Save Today!

Dave’s insurance Endorsed Local Providers (ELPs) are independent insurance agents who will help you find great prices on each type of insurance Dave recommends. Find out if you’re paying too much for your coverage, or, worse, if you don’t have enough. Contact your ELP today!

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