Dave Ramsey Said You Don't Need This Auto Insurance Coverage. Here's Why He's Wrong
Dave Ramsey doesn't believe drivers need rental car insurance. Keep reading to learn why this coverage could be a good idea. Dave Ramsey has asked readers what should they think when they should get a new homeowners insurance policy if their premiums go up. He suggests that even if your home is fully paid off or in cash, it's a very important thing to have. However, he says that regardless of the circumstances, it should consider bundling your homeowners and auto insurance policies to save money on both sets of premiums. Dave Ramsey also discussed the importance of shopping at Sam's Club for items such as large containers of mayonnaise, as well as the cost of running a school or having a party. He concluded that while shopping there, it may not be the best idea for everyone, it would be easier to buy large quantities of produce.
Published : one year ago by Christy Bieber in Finance Auto
Should I Get a New Homeowners Policy if My Rates Go Up? Putting homeowners insurance in place is a prerequisite to signing a mortgage loan. But even if your home is fully paid off or you're buying a home in cash, it's a very important thing to have.Without homeowners insurance, you could end up liable for expensive repair bills if your property sustains damage, whether from a fire or an outside storm. Plus, you need liability coverage in case someone gets injured on your property -- such as if a delivery person slips and falls in the course of dropping a package off on your porch.Unfortunately, the cost of homeowners insurance is never set in stone. And over time, your premium rates could rise.You may be tempted to get a new homeowners insurance policy if you get word from your insurer that your premiums are going up. But whether a new policy will save you money will depend on your specific circumstances.Understand why your costs are risingThere are certain changes you might make to your home that cause your homeowners insurance costs to increase. Putting in a pool, for example, is likely to result in higher premiums, because a large area of water in your backyard opens the door to not just flood damage, but injury.If your homeowners insurance rates have risen due to a change you made to your home, you can try seeing if other insurers will charge you less money for coverage. But you may find that you're looking at higher rates across the board.Even if you didn't make any notable changes to your home, it may just be that the cost of homeowners insurance has gone up in your general area. So in that case, you may find that your current coverage is still the most cost-effective, despite an increase in your premium.You should also know that the more claims you file against your policy, the more likely it is for your premiums to rise. But even if you don't file many or any claims against your homeowners insurance, if other insured parties in your area do, that could raise your costs -- even though that might seem glaringly unfair.It makes sense to shop around no matter whatProgressive says the average annual cost of homeowners insurance in its network ranges from $999 to $1,655 for policies effective on or after April 1, 2020. Your costs may be higher or lower, depending on factors like where you live and the size of your property. And your costs might also rise over time, whether you make changes to your home and file a lot of claims against your policy or not.Regardless of why your homeowners insurance costs have risen, it's a good idea to do some rate shopping and see if another homeowners insurance company has a better deal to offer you. In fact, it's a wise idea to compare your choices for homeowners insurance coverage even if your costs haven't gone up. You never know when there might be a better deal elsewhere.Along these lines, if you're not already bundling your homeowners and auto insurance policies, you may want to consider doing so. Going this route could save you money on both sets of premiums, making both homeownership and vehicle ownership less expensive on a whole.
5 Things to Never Buy at Sam's Club It's easy to go wild while shopping at Sam's Club. After all, there are new things to see and buy every time you walk into the warehouse store. And while many purchases are spot-on, some only make sense if you go in with a plan. Here are five things it rarely makes sense to buy at Sam's Club. 1. Huge containers of anythingIf you're excited by the idea of purchasing a one-gallon container of mayonnaise, you're my kind of person. However, it may not be the best idea, particularly if you're unsure how long it will take to consume a container of mayonnaise as large as a newborn baby.While there are dueling expert opinions on the matter, Dr. Karen Latimer is quoted in EatDelights as saying that a jar of mayonnaise can last for months if left unopened and stored away from sunlight. However, once that jar is opened and refrigerated, you have between two and three months to ensure it's consumed. And if you accidentally leave it out for eight hours? Prepare to toss it. In short, unless you're running a school cafeteria, a massive quantity of mayo may not be a good buy. It's easier to save money on groceries if you're willing to give up mega-sized products. 2. Fresh produceEvery time I walk into a warehouse store, I rack my brain to figure out who would benefit from purchasing the fresh produce. It's colorful and looks supremely healthy, but you can't just pick up two or three tomatoes or apples. So, unless you're throwing a huge party and need enough avocados to put a bowl of guacamole on every table, or you're a summer camp director and know the kids will tear through 10 pounds of onions with their burgers, you'll probably save money by picking up the actual quantity of produce you need at your local farmer's market or grocery store. Given that an estimated 20% of the food we buy goes to waste, making an extra stop could be worth the money. 3. SunscreenSummer is upon us, and we all know better than to allow our skin to burn in the midday sun. Sunscreen is essential, but unfortunately, it does expire. According to Mayo Clinic, we have 36 months to use sunscreen from the time it's manufactured. The active ingredients will break down faster if exposed to excessive heat or direct sun. Picking up a three-pack of sunscreen as you browse your local Sam's Club may seem like you're saving money.. However, if you still find yourself squeezing sunscreen from one of those bottles three years later, you're essentially putting lotion on your body and expecting it to protect you from the elements. 4. Vitamins and over-the-counter medicines One of the things that make vitamins and over-the-counter medicines so attractive at Sam's Club is how much less you have to pay per unit. After all, the less you spend, the more money you'll have to put away in a savings account, right? It's not quite that simple.Let's say you need to pick up Bayer Low Dose Aspirin. At Target, you'll pay between $0.05 and $0.06 per tablet. But at Sam's Club, you'll pay only $0.03 per tablet. In this situation, there's no doubt that Sam's offers the best bargain. According to Bayer, aspirin remains 100% effective for up to four years, and you'll probably use an entire bottle of aspirin in that time. However, it can be tough to determine when other products in the pharmacy department are due to expire. The Food & Drug Administration does not require vitamin manufacturers to put expiration dates on their products. While some manufacturers do so willingly, it's not something you can count on. For example, if you were to pick up a 400 count bottle of Vitamin C + Zinc 500 mg at Sam's Club today, you'd pay $0.04 per capsule. Here's the problem: A Brazilian Journal of Pharmaceutical Sciences study found that 92% of vitamin C supplements lose efficacy after 12 months of storage. But unless you know that in advance, you don't know if you're getting an actual bargain. 5. Diapers and toilet paperGoing out of your way to purchase either diapers or toilet paper at Sam's Club may cost you more than it's worth. We all use toilet paper. Retailers know that, so they frequently discount toilet paper to lure shoppers into their stores. Chances are, you'll score a deeper discount by purchasing TP when it's on sale at your local market. You can compound the savings by using a coupon. The same is true of diapers. Today, the cost of Member's Mark Newborn Diapers comes out to $0.16 per diaper. At the same time, Target's Up & Up Newborn Diapers sell for a little less than $0.14 per diaper. It's not a huge difference, but the savings add up when you consider how many of those things you go through while a child is young. By determining what constitutes a good buy and which products you want to avoid before walking into a Sam's Club, you can spend less and keep more in your bank account.
5 Reasons People Have Their Sam's Club Membership Revoked If you like shopping at Sam's Club, the last thing you want is to lose your membership. Since it has a large selection and reasonable prices, it's a great place to shop without too much of a hit to your finances. Fortunately, Sam's Club doesn't go around canceling people's memberships for no reason. That wouldn't be a great way to run a membership club.However, it does reserve the right to revoke membership, and it lists actionable offenses that could lead to this on its website. Here are the most common reasons for people to have their Sam's Club membership revoked.1. Writing bad checksBounced checks could get you bounced from Sam's Club. You might be able to fix this if it's a one-time issue, but not if it happens on a regular basis. A better option is to pay with a rewards credit card instead of a check, so you can earn cash back or points on your purchase. If you're one of the store's frequent shoppers, there are Sam's Club credit cards that are worth checking out.2. ShopliftingLike most of the actionable offenses on Sam's Club's list, this one's pretty self-explanatory. Most stores ban people who get caught trying to shoplift. With those that require a membership, including Sam's Club and Costco, they'll usually take away your membership.3. Violent behaviorYour local Sam's Club is not the place to throw down, even on Black Friday. You'll most likely lose your membership, plus there's the whole "could get arrested and spend the night in jail" part.4. Abusive, disrespectful, or threatening behavior toward an associate; profanity used toward an associateIt should go without saying, but sadly, not all customers treat retail employees well. Sam's Club considers practically any type of rude behavior toward its associates as an actionable offense. That gives it plenty of leeway to revoke memberships of problem customers.5. Questionable returnsReturn abuse is a common issue for retailers, especially those with generous return policies. It's the No. 1 reason people have their Costco membership revoked, and it's also an actionable offense at Sam's Club.You don't need to worry if you have a legitimate return to make every now and then. Even if it has been months, or years since you made the purchase, Sam's Club lets you return most items at any time. This stipulation about questionable returns is designed for the small percentage of customers who try to game the system. Here are a few examples of what can qualify:Returning a large number of your purchases.Frequently returning items you've had for a long time.Committing any sort of return fraud, such as trying to pass off an old laptop or phone as a new one.Most members won't have any problemsThe reasons listed above are the actionable offenses that Sam's Club specifically mentions. It can technically revoke your membership for any reason, without cause.The typical shopper doesn't have anything to worry about. All the things Sam's Club will ban you for aren't exactly normal customer behavior. If someone tries to steal, start fights, or return 90% of what they buy at Sam's Club, their membership could be revoked. The people who just shop there, enjoy the deals, and don't yell at the employees can have a membership for as long as they want.
Who Treats Employees Better: Costco or Sam's Club? Winner: Costco, due to a more generous healthcare plan and bonus program. For example, long-tenured hourly employees receive an annual bonus as well as additional compensation twice a year in the form of bonuses and extra checks.Potential to unionizeDue to its merger with the union-staff Price Club in the 1990s, employees working in the old Price Club locations are unionized. According to a Q&A feature on Indeed.com (where answers are provided by employees), even mentioning unions as a Sam's Club employee can lead to termination.Winner: CostcoEmployee satisfactionThe job search site Glassdoor gives company employees the opportunity to rate the company they work for. Along with the respect they're shown on the job, flexibility, and the opportunity to move up the ranks, this is where having enough money to save a little each month factors into job satisfaction. Here's how Costco and Sam's Club employees rated their respective employers.Overall ratingCostco employees: 4.0 out of 5Sam's Club employees: 3.3 out of 5CEO approvalCostco employees: 84%Sam's Club employees: 61%Would recommend the job to a friendCostco employees: 76%Sam's Club employees: 54%Winner: CostcoPerhaps the best snapshot of how well a company treats its employees can be found in one statistic: The turnover rate. While Costco experiences a turnover rate of 17%, Sam's Club has a rate of 44%. In our opinion, that makes the final decision easier. Costco treats its employees better than Sam's Club treats its employees.
3 Costco Vacations Reviewed: 'Stunning,' 'Seamless,' and 10 out of 10 Taking the occasional vacation is one of the best things you can do for your mental health, as it's wonderful to get a change of scenery, have new experiences, and take a break from work. Unfortunately, vacations don't come cheap. There are ways to save, such as by considering a road trip rather than flying and renting a car. But if you want a trip with all the bells and whistles with less hassle and perhaps at a lower price, you should consider Costco Travel.Yes, Costco sells travel packages! They are exclusively for Costco members who live in the U.S., and come with upfront pricing and as Costco puts it, "the value you want with the quality you expect." A few of my colleagues here at The Ascent were kind enough to share their experiences with Costco Travel, so let's take a look at their vacations and see what kind of comparable trip you can take.1. A five-star honeymoon in GreeceDestination(s): Athens and SantoriniDuration: Seven days (October 2022)Cost: $4,500 (covered hotel stays, transportation to/from airports and ferries, and complimentary arrival drinks at hotels)Savannah Esworthy and her new husband booked their honeymoon through Costco Travel, and opted for five-star hotels for a luxury experience. They booked their own airfare separately, however, because they wanted to use travel rewards points for that cost.Savannah called out the transport between airports and hotels specifically. "Our drivers were never late, they were always friendly, and they offered information to stay in touch with them during our stay in Santorini." The hotels were also "absolutely stunning," and a representative from Costco Travel had told them that this was a honeymoon trip, so the newlyweds truly had the red carpet rolled out for them.Want to take a similar trip?I took to Costco Travel to build a Greek adventure for two (including flights this time). For a week in September 2023, for two people and stops in Athens and Santorini, I came up with a price of $13,781. This trip includes airfare from New York, stays in three luxury hotels (two in Athens, one in Santorini), and land and ferry transport. This trip represents a hit to your checking account, but being able to sit back, relax, and let Costco handle everything might be just the ticket.2. Eight wonderful days in MexicoDestination(s): Playa del CarmenDuration: Eight days (June 2023)Cost: $5,230 (included optional insurance, airfare and transportation to/from resort, resort stay, concierge service, and room upgrade)Mary Henderson took a trip to a resort in Playa del Carmen, Mexico with the help of Costco Travel. The $5,230 charge included airfare, as well as travel insurance, which is optional but may be a good idea if you're booking the vacation of a lifetime. Mary rated her trip a perfect 10/10, noting that "Costco travel makes everything seamless." This extended to flight delays or cancellations, since "someone is working behind the scenes" to ensure all pieces of your vacation are adjusted accordingly. She's glad she sprung for the travel insurance, as it provided additional peace of mind.Want to take a similar trip?If you want to spend eight days in Mexico, you could be looking at a cost of $4,612. This price included flights from New York to Cancun, Mexico and seven nights at an adults-only all-inclusive resort for two. It also includes travel to and from the airport when you arrive.3. An Alaskan voyage that never was -- but that came with an easy refundDestination(s): Various places in Alaska, and both land and sea travelDuration: Two and a half weeksCost: N/AMaurie Backman, a fellow writer here at The Ascent, had booked an epic trip to Alaska for her family of five for August 2020. Unfortunately, COVID-19 got in the way of those plans, as it did for so many aspiring vacationers. But she did get a refund, with the help of Costco Travel. Maurie noted that using the service was "like having my own personal team of travel agents." This came in handy, especially since many cruise lines weren't rushing to refund passengers for canceled bookings. As Maurie put it, "Costco got in touch with them on our behalf and made sure we got our money back." She hopes to rebook this trip in the future, and plans to use Costco Travel again.Want to take a similar trip?To price this one out, I looked to Costco Travel's cruise section. For a 14-day trip with Holland America that will take you from Vancouver to Fairbanks, with many enticing stops along the way (including a few days in the majesty of Denali, America's tallest mountain), you'd be looking at $1,974 per person, with included taxes and fees. This doesn't include airfare -- for a flight from New York to Vancouver at the start of your journey and the trip home from Fairbanks to New York, I found Google Flights prices of $185 and $262 (not including baggage fees or other extras, and this is the economy fare).If you already love Costco for groceries, gas, tires, electronics, and beyond, why not give Costco Travel a try? You'll benefit from a team of travel professionals who know how to give you the worry-free experience of a lifetime.
Topics: Insurance, Dave Ramsey