AAA or self-insure?
What do you think about auto club memberships like AAA?
Dear Dave,
What do you think about auto club memberships like AAA?
-Jeremy
Dear Jeremy,
I've got nothing against AAA. But honestly, I tend to self-insure through savings for these kinds of things. I've probably used, or had need of, a tow truck twice in the last 20 years. When it comes to this kind of product, I always look at it from the perspective of, "Where does it leave me if I don't sign up for their service?"
Again, I don't think AAA is a big rip-off or anything like that. It's just a type of insurance, if you will, for which I have no need. I guess it could be a handy thing to have if you were in a situation where you were using their services a lot. But if their average customer were like that, they'd probably end up losing money on you.
-Dave
Dave Ramsey is America's trusted voice on money and business. He's authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. His newest book, written with his daughter Rachel Cruze, is titled Smart Money Smart Kids and is out now. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.