DAVE RAMSEY

Dave Ramsey says: Take the bigger check, it’s quick and easy

Sep 12, 2023, 1:00 PM

windshield broke...

(Getty Images Photo)

(Getty Images Photo)

Dear Dave,

My car was declared totaled because of hail damage, and my insurance company says I have two options. One is to take a higher total loss settlement check of $19,000 and use it toward the purchase of another car. The insurance company would then take possession of the car. The other option is to accept a check for $13,000 and have the car on a salvage title. The car is worth $15,000, and I have 20% car replacement assistance on my policy that increases the total loss settlement to the $19,000 amount I mentioned earlier. I’m on Baby Step 3 of your plan, and I owe nothing on the car. What should I do?

— Meagan

Dear Meagan,

Take the bigger check! That’s a quick and easy decision, but give me a minute to explain why. It’s not about being greedy—it’s a little more complicated than that.

If you had $19,000 in your pocket, would you go buy a $6,000 hail-damaged, salvage-title vehicle for everyday driving? Of course, you wouldn’t do that! The insurance company is probably hoping you’ll overlook the $19,000 offer and essentially pay $6,000 for this beat-up car. No. Thank. You. I’ll pass on that deal.

With $19,000, you’ll have plenty of cash to rent a car for a couple of weeks and take time to find a great-quality used car at a good price. You might even be able to negotiate with the insurance company to give you a little time to look for another ride before they come pick up the old one.

But no, you don’t want that messed up, old car. Why would you? That thing probably looks like a kid with a bad case of acne right now. Go find yourself a nice car, hon. There are plenty of affordable, slightly used vehicles on the market right now. There’s no reason for you to drive around in something that’s all beat up if you don’t have to.

Best of luck, Meagan!

— Dave

ENDORSEMENTS

Dave Ramsey

(Pexels Photo)...

Dave Ramsey

Dave says: Tell sister no to borrowing money for own sake

Even if it’s family, saying no and telling them it’s time to straighten up and start acting right could be the right money decision.

2 days ago

A landlord discovered his tenant had been using the property as a short-term rental. (Pexels photo)...

Dave Ramsey

Dave Ramsey says: Get identity theft protection and make your tenants stick to their agreements

Financial expert Dave Ramsey answers two financial questions from listeners. One wonders about Ramsey's opinion on identity theft protection.

9 days ago

...

KTAR Video

Video: Dave Ramsey financial tips heard on KTAR News 92.3

Hey Arizona, we’re all feeling it. We’re paying more for everything. We want to help you live a happy and debt free life. Join us on KTAR News weekdays from 12-2 p.m. for The Ramsey Show. For the latest breaking news, tune to KTAR News 92.3 FM or the KTAR News app.

13 days ago

...

KTAR Video

Video: Listen to Dave Ramsey on KTAR News 92.3 weekdays noon-2 p.m.

For news you can trust, count on KTAR News. Dave Ramsey knows you can stay up to date with your community. For the latest about YOUR life and money, you can catch The Ramsey Show weekdays 12-2 p.m. on KTAR News 92.3 FM or the KTAR News app.

13 days ago

Illustration of a house with hands above and below it....

Dave Ramsey

Dave says: Use rental property sale proceeds to pay off home, become debt-free

Dave says Anthony should use the proceeds from the sale of a rental property to pay off his home mortgage and become debt-free.

23 days ago

Feeling unmotivated despite financial success? Discover Dave's heartfelt advice on finding and livi...

Dave Ramsey

Dave says: Here’s some advice for a financially blessed couple

Feeling unmotivated despite financial success? Discover Dave's heartfelt advice on finding and living out God's purpose beyond wealth.

30 days ago

Sponsored Articles

...

Midwestern University

Midwestern University Clinic visits boost student training & community health

Going to a Midwestern University Clinic can help make you feel good in more ways than one.

...

Collins Comfort Masters

Here’s how to be worry-free when your A/C goes out in the middle of summer

PHOENIX -- As Arizona approaches another hot summer, Phoenix residents are likely to spend more time indoors.

...

Midwestern University

Midwestern University Clinics: transforming health care in the valley

Midwestern University, long a fixture of comprehensive health care education in the West Valley, is also a recognized leader in community health care.

Dave Ramsey says: Take the bigger check, it’s quick and easy