Saving & Spending Home & Auto

Dave Ramsey Says It's Been Too Long Since You've Done This One Important Thing

If you want to avoid wasting money, review this now.

By Anna Armstrong

Edited by Lisa Dammeyer

Updated March 19, 2026

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When was the last time you checked your car insurance policy? If you can't remember, you're not alone. Many people set it and forget it, letting premiums quietly creep up. Famed financial expert Dave Ramsey warns that this inaction can cost you serious money. Regularly reviewing your policy is a simple way to keep more cash in your wallet.

Here's what Ramsey says and exactly how you can lower your insurance policy bill.

Dave Ramsey's advice: Review your auto insurance policy

Ramsey recently called out a mistake he sees far too often: Americans simply forget to review their car insurance. He stresses that spending a little time on your policy is one of the smartest money moves for car owners, as it can prevent unnecessary costs.

Many drivers keep paying for coverage they no longer need or miss discounts that could lower their premiums. Regular reviews put you back in control.

Who really has the cheapest auto insurance in your area? Check your zip code here.

Why car insurance companies bank on you not reviewing your policy

Insurance companies know that most people won't check their policy once it's set. This inaction allows premiums to increase quietly over time, often without the policyholder noticing. Ramsey says this is intentional. The longer you stay passive, the more insurers profit.

By failing to review your coverage, you could be paying for extras or outdated options that no longer make sense for your situation.

It's important to understand what you're actually paying for

Car insurance can feel confusing. In fact, 96% of American drivers don't understand what their policy covers, according to Business Wire. But understanding what each line item means can make a big difference. Take time to learn the basics of liability, collision, and comprehensive coverage so you know what protects you and what doesn't.

When you clearly understand what you're paying for, you'll be far more confident making changes and questioning unexpected rate increases.

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How to review your policy

Start by gathering your insurance documents and reviewing your coverage, premiums, and deductibles. Look at optional extras like roadside assistance, rental car coverage, or gap insurance.

From there, compare the coverage with your current needs, including changes in car value, driving habits, or lifestyle. Even small adjustments can lead to significant savings. The key is to take a proactive approach instead of waiting for a surprise bill.

Ramsey offers solutions if you want to lower your bill

Once you've reviewed your policy, Ramsey provides actionable strategies to save money. These tips are easy to implement and often yield immediate savings. From comparing policies annually to dropping unnecessary coverage, each step focuses on controlling costs without compromising essential protection.

Following these strategies can help you keep more of your hard-earned money and prevent insurers from quietly inflating your premiums over time.

1. Shop policies around each year

Loyalty doesn't pay, according to Ramsey. Rates change constantly, and sticking with the same provider could mean overpaying. Yet nearly three out of four Americans don't shop around for new insurance companies, leaving potential savings on the table.

Take time annually to review quotes from multiple insurers using online tools or an independent agent. Even switching to similar coverage can save hundreds while keeping your budget aligned with your financial goals.

Don't Miss: 7 warning signs you're paying too much for car insurance.

2. Raise your deductible

Increasing your deductible is another way to lower your monthly premium. Ramsey cautions that this strategy works only if you have enough savings to cover the deductible in case of a claim. A higher deductible reduces the insurer's risk, which translates to lower payments for you.

Make sure you're comfortable with the potential out-of-pocket expense, and keep the funds accessible so a claim doesn't create financial stress.

3. Ask for discounts

Many drivers qualify for discounts they aren't aware of. Good driver discounts, student savings, bundling home and auto insurance, or low-mileage reductions can all help lower premiums. Ramsey recommends checking with your provider to see what applies to your situation.

Over time, small, consistent discounts can add up significantly. This can potentially free up hundreds of dollars each year that you can put toward savings or other financial priorities.

4. Drop unnecessary coverage

Some policy add-ons may no longer make sense for your needs. Roadside assistance or rental car coverage, for instance, might be redundant if you have a robust emergency fund.

Ramsey points out that removing extras you don't need can immediately reduce your monthly premium. The goal is to have coverage that protects you against real risks without paying for unnecessary options that inflate your bill.

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5. Use an agent you trust

Working with a trusted independent agent can simplify the process. They can compare policies from multiple providers and help tailor coverage to your needs. Ramsey notes that a good agent saves you both time and money while ensuring you don't overpay.

Choosing someone who understands your situation can make reviewing your insurance stress-free and help you make confident decisions about what coverage you truly need.

6. Set an annual reminder to review your policy

Another great way you can avoid overpaying is by setting a yearly reminder to review your policy before it renews. Schedule it about a month in advance so you're not scrambling at the last minute.

That extra time gives you a chance to compare auto insurance options and see if a better deal is available. A simple calendar alert helps you stay in control instead of letting your premium auto-renew unchecked.

Bottom line

Taking a few minutes each year to review your car insurance gives you control over your finances. Simple actions like comparing rates and asking about discounts can prevent overpayment and could let you save money on car insurance.

Interestingly, many Americans pay hundreds more than necessary simply because they never check their policy. Making an annual review a habit ensures you keep more money in your pocket and avoid surprises at renewal time.

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