How much car insurance does Dave Ramsey recommend?
Asked by: Buster Stiedemann | Last update: July 16, 2025Score: 4.3/5 (4 votes)
How much auto insurance do I need Dave Ramsey?
Here's a quick-and-dirty answer: You need $500,000 worth of liability insurance. That's the type of auto coverage you're legally required to have to drive anywhere. And that's the bare minimum amount of coverage we recommend for all drivers—but there's a lot more to it than that.
What is a good amount of car insurance coverage?
Typical coverage amounts: Insurance experts recommend at least $100,000 per person and $300,000 per accident for bodily injuries, and $100,000 for property damage.
How much car does Dave Ramsey recommend?
Ramsey also recommends a key rule: the total value of all your vehicles should not exceed half your annual income.
Which insurance company does Dave Ramsey recommend?
Zander Insurance Is RamseyTrusted
It means Zander is the only company Dave and the entire Ramsey team trusts to help you find term life insurance. They've faithfully served over 600,000 folks in the last 25 years. And they'll help you find the right policy too.
How Much Car Insurance Do I Actually Need?
What insurance does Suze Orman recommend?
One of my key life insurance rules is this: Stick with term life insurance. Unless you have someone in your family with special needs, there is typically no need to buy whole life, or universal life, which are referred to as “permanent” policies and cost a lot more.
What 4 investments does Dave Ramsey recommend?
A diversified portfolio typically includes a mix of stocks, bonds, and mutual funds, balancing growth and stability. Ramsey often recommends allocating investments into four types of mutual funds: growth, growth and income, aggressive growth, and international funds.
What vehicle does Dave Ramsey drive?
Dave Ramsey BSMM. I daily drive a Jaguar XJ. It's a 2016.
What is the 20 4 10 rule?
The rule recommends making a 20% down payment on the car, taking four years to return the money to the lender, and keeping transportation costs at no more than 10% of your monthly income.
What is a good insurance coverage amount?
For example, if your net worth is $90,000, then a good car insurance policy for you might be structured as $50,000/$100,000/$50,000, giving you $100,000 in total bodily injury coverage per accident.
Is 200 a month a lot for insurance?
Is $200 a lot for car insurance? Paying $200 per month is a little higher than average for car insurance. Nine states have average rates for full coverage that are higher than $200 per month, and no state has average rates that high for minimum coverage.
What is the ideal insurance amount?
It's ideal to get a life cover 10-12 times your annual income that would take care of all these expenses along with inflation in your absence.
What are some ways to save on car insurance Dave Ramsey?
- Tip #1: Raise Your Deductibles. ...
- Tip #2: Try A “Safe Driving” App. ...
- Tip #3: Pay Your Premiums In Full. ...
- Tip #4: Bundle Your Policies. ...
- Tip #5: Shop Around. ...
- Tip #6: Get Enough Coverage.
Is $100 a month too much for car insurance?
Paying $100 a month for car insurance is not particularly expensive. The average car insurance policy costs anywhere from $56 per month for state-minimum coverage to $176 per month for full coverage, and individual car insurance rates vary depending on factors such as your driving record, age and location.
What is Dave Ramsey's advice on buying life insurance?
Core Ramsey Teaching: You only need life insurance while you have people depending on your income. Buy a 10–20-year term policy worth 10–12 times your annual income. Since life insurance is only for the short-term, you should only buy term life insurance. (Hence the name.)
What is Dave Ramsey's rule for buying a car?
“Your cars, trucks, boats, motorcycles and other vehicles should not have a total value that exceeds half your annual income. Why? You don't want too much of your wealth tied up in things that depreciate. And cars, trucks and things with motors depreciate big time,” Ramsey posted on X.
How much should I spend on a car if I make $60,000?
If your gross salary is $60,000, your take-home monthly pay is probably around $3750, assuming about 25 percent of your pay goes toward taxes and other expenses. Based on a calculation of spending 10–15 percent of your monthly pay on a car loan, you should spend no more than $562.50 on your monthly car payment.
How much does the average millionaire pay for a car?
Also, I mention the median price paid for the most recent motor vehicle purchased by a millionaire was $31,367 [for decamillionaires-$41, 997]. It is understandable why so many people relate wealth with the price tag of a motor vehicle.
What car can I afford making 50k a year?
To get an idea of how much car you can afford, a good rule of thumb is to pay no more than 35% of your annual pre-tax income. So, if you make $50,000 before taxes per year, your car purchase price should not exceed $17,500.
What is Dave Ramsey's favorite mutual fund?
I put my personal 401(k) and a lot of my mutual fund investing in four types of mutual funds: growth, growth and income, aggressive growth, and international. I personally spread mine in 25% of those four.
What does Suze Orman recommend investing in?
Whether you're new to investing or looking to refine your strategy, Orman advises investing in index funds or ETFs and staying consistent, whether the market is going up or down.
How much savings does Dave Ramsey recommend?
How Much You Should Have in Your Emergency Savings. Here's a Dave Ramsey principle we agree with: If you make less than $20,000 per year, aim to have at least $500 in emergency savings. If you make more than $20,000, then aim for at least $1,000.