Dan is with us in Illinois hey Dan welcome to the Dave Ramsey show hey Dave thanks for taking my call sure what's up just I went to Xander and I'm looking at auto insurance and it looks like I can save a good amount of money there just I'm good with like the deductible and the premium and everything but I'm looking into like the bodily injury.
Property damage like uninsured motorist injury and that sort of thing and I didn't know like what level is recommend for that kind of stuff well the typical live typically in the auto insurance world the cheapest part of the policy is the liability part of the policy so I always recommend carrying high liability like five hundred three hundred or.
Something like that because it's not the difference in that and going cheaper on that is very low and if you get into the hundreds of thousands of dollars of liability it it's seldom is seldom stops at 100 you know or 200 so you want to get a huh you want to get the 500 300 or 500 250 IRA which structure with that particular company something like that.
So in general in the insurance world liability is one of the best buys it's the least you pay for and it's a it's a good spin as you get wealthier and you start to say you have a net worth of more than a half million dollars or and or you have a large income you're probably I'm even going to want to pick up a liability umbrella policy to attach.
To the top of your homeowners and the top of your car insurance you can buy an extra million dollars in liability for those two things in an umbrella policy for a couple hundred bucks a year in most cases and so once again that kind of makes my case that the liability insurance is just not that expensive and other than that most of the standard.
Coverages are fine on the other stuff and what you're looking for is just an apples to apples comparison what you so that you can see if you're really saving money and you typically will be saving money when you use someone like a sander that is an independent insurance agent hey thanks for the call I appreciate you joining us guys we talked.
About this in the ads all the time but it's good to just stop as a teaching tool and let you understand there's two types of insurance agents out there there's captive agents and independent agents captive agents work for one company like a state farm or a nationwide or something like that they can only sell that company their captive.
They're owned by that company in that sense an independent insurance agent could sell many policies for many different companies now they can't sell for the captive companies but what you'll find is the independent insurance agent that shops among several different companies will almost always beat your state farms and your nation wives and.
That kind of thing for one thing there's no expensive football players on their commercials costs a lot of money to get an NFL quarterback on your commercial cost a lot more money to get two of them on your commercial and just keep this in mind that's built into your premiums okay and State Farm is the largest insurance company in America on property.
And casualty but they are definitely not the best I personally had trouble with them getting to pay them Clank getting them to pay claims people hit my car with and they had State Farm Insurance always go oh crap this is gonna be a fight I'm going back to fight these people to get my money out of them and so that that's what you run into and so.
You know you want to net and it's not big does not mean better and more expensive does not mean better and just because you went to high school with the person doesn't mean it's better okay you're looking for an independent insurance agent and they will shop among the independent surance agent works for you they get paid when they do a good.
Job and you buy the other people work for the insurance company and so that's why they call it a State Farm agent or a nationwide agent or an Allstate agent those are captive companies and when you shop you'll almost always get a better deal when you shop against those and and many times much better coverage even.