Which insurance company does Dave Ramsey recommend?


Editorial team Published on

Dave Ramsey recommends having eight essential types of insurance to protect your wealth and family from financial disaster, while strongly advising against whole life or cash-value insurance policies.

For purchasing coverage, he frequently endorses Zander Insurance and Ramsey Solutions.

The 8 Essential Insurances Dave Ramsey Recommends

  • Term Life Insurance: Get a level term policy worth 10 to 12 times your annual income. He completely rejects whole, universal, or variable life insurance because they are expensive and combine insurance with poor investments.
  • Auto Insurance: Carry full coverage (liability, comprehensive, and collision) with high liability limits (at least $500,000) and a high deductible (like $1,000) to lower your premium. Most users on Reddit agree he advises carrying comprehensive and collision even if you can replace the car in cash, due to low relative costs.
  • Homeowners or Renters Insurance: Essential for protecting your home, dwelling, and personal belongings from disasters or liability. He advises skipping home warranties and relying on an emergency fund instead.
  • Health Insurance: Non-negotiable to prevent major medical bills from causing bankruptcy. He favors high-deductible plans paired with a Health Savings Account (HSA).
  • Long-Term Disability Insurance: Covers 60% to 70% of your monthly income if you cannot work due to illness or injury. He suggests opting for the longest elimination period (90 to 180 days) you can afford with your savings.
  • Long-Term Care Insurance: Crucial for nursing home or in-home care costs, but he advises buying it only after age 60 when the risk increases.
  • Identity Theft Protection: Recommended as an active measure to monitor and recover personal data and identity fraud.
  • Umbrella Policy: Recommended for extra liability protection if your net worth exceeds $500,000.