Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTDanni SantanaSat, July 18, 2026 at 12:00 PM GMT+2 4 min readThe Ramsey Show Highlights/YoutubeWith the price of everyday essentials like gas and groceries rising, Americans will take a little respite from just about anywhere they can get it.Recently, Dave Ramsey offered up an unexpected way to save on car insurance on his radio show (1) that involves taking on more risk. In response to a listener's question about whether to lower or increase their car insurance deductible, he suggested raising it in order to pocket the savings they'd earn on their monthly premium.Must ReadHe noted that this strategy only makes sense if the decrease in your premium rate is substantial enough that it makes a higher deductible worth it. You could take the money and stash it in a high-yield savings account. If you ever do need to use it, you can withdraw the money."We're always trying to raise deductibles and raise the amount we have in savings to cover it so we're giving the insurance company less money," he said.The math behind Ramsey's thinkingLet's play out this scenario with some basic numbers.Say you pay $300 per month for your car insurance and have a $500 deductible. If you change your policy and take on a $1,000 deductible, but your premium drops to $250, Ramsey's approach could be worth it.A $50 per month drop in your premium rate amounts to $600 a year in savings, compared to the extra $500 of risk you agree to take on. This is just one example of how this could work. But generally, if you can make your money back on the added risk within three years, it's worth it, Ramsey said."Take the savings on your premium, divide that into the additional risk, and if that's about a three, about a three-year risk pattern, you're probably wise to take the higher deductible in that case," he said.A scenario where this doesn't work, using the same example above, is if your premium only drops by $10 to $290 with a $1,000 deductible. That's $120 a month in savings. So it would take more than three years for that money to enter your account.Read More: Are you paying too much for car insurance? Here are 3 clever ways to slash your monthly bill'Insurance should cover catastrophes, not hangnails'Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info