Insurance is something that can be greatly beneficial to you. For a small fee you can get some financial security and peace of mind, protecting yourself against some of the terrible things that can happen in life. However, sometimes insurance is just a waste of money.
Carefully consider the following 10 types of insurance before getting them because you may not need them:
1. Car Rental Insurance. You may have enough insurance protection from your personal auto insurance and your credit card protections that you don’t need additional car rental insurance. In many cases, the insurance that you can get at a car rental agency is redundant so you’re wasting a lot of money for absolutely no reason. Look into this carefully before any trip that you take.
2. Credit Card Insurance. This is insurance that pays off your credit card balance in the event of your death, severe disability or certain unemployment situations. Some credit cards come with this protection and that’s fine but it’s not something you should pay extra for. Instead you can get traditional life insurance coverage to help deal with these things if they occur.
3. Flight Life Insurance. Some people get this specific type of travel insurance, which provides benefits to your beneficiaries if you die during an airplane accident. The likelihood of a death of this kind is very small and most people say it’s not worth the cost especially if you already have other life insurance coverage.
4. Identity Theft Insurance. Many people are worried about identity theft. What if someone steals your identity, takes out loans in your name and ruins your credit? Identity theft insurance was created to protect against this fear. However, it is often not worth the cost. It usually has a high deductible and the ongoing monthly fees add up quickly. The cost of repairing credit after identity theft is often lower than the cost of paying for identity theft insurance.
5. Private Mortgage Insurance. This is a type of insurance that you are required to purchase when you buy a home with a small down payment. The mortgage company says that you have to get it if you are putting less than 20% down. Many homeowners don’t even realize that they can avoid this cost by saving up 20% of the down payment costs before they purchase a home. Additionally, you can stop paying the cost once you’ve paid at least 20% down on your house in the future. Don’t waste money on this.
6. Wedding Insurance. You can purchase insurance that helps to reimburse your costs if things go wrong on your wedding day. For example, you may be reimbursed if bad weather prevents your wedding from happening or if your wedding dress is somehow damaged before your special day. The truth is that little mishaps may happen but they don’t have to ruin your special day if you have a backup plan and a good attitude. Those are much better than paying for wedding insurance!
7. Pet Insurance. There are definitely some instances in which it makes sense to get pet insurance. If you are the type of person who takes on the burden of ill animals and provides them with expensive medications and therapy for many years then it can be worthwhile. The average pet owner typically doesn’t financially benefit from this type of insurance, though.
8. Mechanical Breakdown Insurance. This is something that you can get to protect your new car in case of a breakdown. The reason it doesn’t make sense is that it’s only good for a few years after you get the car, a time period when breakdowns aren’t likely and are typically covered by your car warranty anyway. This ends up being a waste of money.
9. Cancer Insurance. This is a type of insurance that is designed to supplement your existing health insurance plan if you get cancer. However, reports indicate that it doesn’t cover enough of the additional costs to be worth it for most people. Some types of cancer aren’t covered and even those that are covered may have limited coverage.
10. Kids’ Life Insurance. The purpose of life insurance is to provide for the people who depend on you if you die and can’t be there for them anymore. Children don’t have dependents so it doesn’t make sense for them to have life insurance.