How To Avoid Insurance That You Won't Ever Need

Don't buy insurance that you don't need.

Insurance... a necessary evil. No one particularly likes paying those monthly or yearly premiums but sometimes there are no options. Most states require auto insurance and those that don't probably will, so that insurance isn't optional. You have to have home owner's insurance when you get a mortgage. No options there, either. But do you really need an extended warranty on an appliance or extra insurance when you rent a car? Here there are options and "thanks, but no thanks" is probably the best choice.

I frequently get offers for extended warranties for my microwave or printer. Why would I want to pay even a minimum for these warranties? Consider the cost of a microwave. A few years ago they were an expensive appliance, but not any more. The same goes for printers. If something is going to go wrong with an appliance, it will probably happen sooner than later... while the original warranty is in force.

Car rental insurance covers people and other vehicles while you're driving the rental car. Check to see if your own auto policy covers you in a rental car. It probably does, so save the $10.00, or so, a day that a rental policy will cost. This same concept applies to flight and travel insurance. Check your existing policies to see if you're covered while out of the country, and your current life insurance policy probably will cover death in a plane crash. Existing health insurance will cover any medical expenses from that plane crash, should you survive.

Cancer insurance sells because of fear. Cancer insurance is costly and may only cover in-patient services. Check your existing health policy... you're probably adequately covered.

Credit card insurance in any form is a waste of money. Loss protection is costly... up to $15.00 a month...and federal law already places a limit of loss at $50..00 per card. Life insurance to cover a credit balance or other loan if you should die sounds like a good idea and most of us buy into it when we purchase a home or a new car. An adequate life insurance policy will do the same thing for less money. Update your life policy to cover all debts.

Credit disability insurance pays minimum payments on a loan if you're disabled. If you currently have disability coverage, you're already covered. Check your policies.

Involuntary employment coverage to cover loan payments if you lose your job is another unnecessary coverage. A far better plan is to create an emergency fund to cover this unexpected situation.

Kids don't need life insurance. People who have dependents need life insurance. If you've thought about a life policy for a child, start a savings or investment account instead.

A new type of insurance that we don't need is identity-theft insurance. A better idea is to use caution when giving out personal information and check your credit report once a year.

We all need some insurance... a life policy, health and disability coverage, auto and homeowners insurance. But specific coverage insurance is rarely necessary. Jewelry or expensive collections may not be adequately covered by a homeowners policy. Special coverage or a rider to the policy may be needed for those items. Check with your insurance agent if you think you might need extra coverage.

I just got an email offer for an extended warranty on my vehicle. Extended warranties can run from $400 to $1300 and they don't cover the things that wear out most often... tires, belts, batteries, brakes... actually the only expenses I've had for my ten year old car. One more type of insurance I don't need, so I think I'll pass.

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