15 Types of Insurance You Don't Need ...

There are so many different types of insurance that nobody could possibly need them all. However, insurance companies tap into our fear of the future and offer policies to protect us from every kind of imagined disaster. They understand that even though we don’t know what the future may bring, we want to be financially secure whatever happens and try to sell us types of insurance which are just not worth the amount of money we pay out for them. So girls, listen up and we'll take a look at 15 Types of Insurance You Don’t Need and save you some money at the same time.

1. Private Mortgage Insurance

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PMI is infamous for increasing homeowners’ monthly mortgage repayment but in reality it only protects the mortgage provider. Despite paying the premiums the borrower receives no benefit from these policies, however, it is possible to avoid paying PMI by carefully considering the loans you take out to pay for your house.

2. Extended Warranties

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Extended warranties on appliances and electronic items are hardly ever used and if reputable brands are purchased, you can be pretty sure they will work so the extra warranty probably won’t be needed. Even on purchases of $5,000, the policy isn’t likely to be worthwhile, although it may reassure you, for anything else (even your straighteners) don’t bother.

3. Automobile Collision

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Collision insurance is there to pay for repairs if you were to be involved in an accident. Loan providers often insist on this but if your car has been paid for, collision cover is optional and probably unnecessary.

4. Rental Car Insurance

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Most auto insurance policies offer extra cover for the cost of a rental car, but people rarely rent cars, and if they do, the cost is hardly worth insuring against. Even though these types of insurance are usually quite cheap, amortized over a long period of time, you will probably spend more than you will gain from this coverage.

5. Car Rental Damage Insurance

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Many types of insurance policies cover renting a vehicle, so don’t duplicate cover and check the policy before paying. Depending where you hire from, you may be able to pay a fee for insurance when you pick the rental up. If the fee is lower than the annual premium, choose the fee.

6. Flight Insurance

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This type of insurance is totally unnecessary, air accidents are very unusual, and your life insurance policy will provide catastrophe coverage.

7. Water Line Coverage

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Chances are that you won’t use this type of insurance, especially if your home is new or you live an average neighborhood where the distance to the street isn’t far. Save your money and the same applies to cover offered by other companies.

8. Life Insurance for Children

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Life insurance is meant as a safety net for dependents and as children don't have dependents, most parents don’t need to buy life insurance for their children. Rather invest the money in an education plan or individual retirement plan.

9. Flood Insurance

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Unless you reside in an area with historic water problems or a flood plain, don't bother with this type of insurance.

10. Credit Card Insurance

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Purchasing insurance to settle your credit card account if ever you can’t pay is a total waste. A much better way is to not run up your cards to start with and then the bill won’t cause you any worry. This way you will save on the insurance premiums and the debt.

11. Credit Card Loss Insurance

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The types of insurance cover offered by credit card companies is usually a waste of money as federal law reduces your liability to $50 if your card is snatched.

12. Mortgage Life Insurance

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These policies pay your mortgage if you were to die but it is more sensible to buy a term-life policy. Credible life insurance will provide money to not only pay off the mortgage but other expenses as well.

13. Unemployment Insurance

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This cover will make minimal payments on your bills if you are without a job but a more sensible plan is to save money by building up a contingency fund instead. You will save the cost of the premiums and, if you keep your job, you won't need to spend anything at all.

14. Disease Insurance

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There are types of insurance for every conceivable disease but rather than attempting to cover yourself for every one that you may confront, get good general medical coverage to ensure that the medical bills will be paid whatever you face.

15. Accidental-Death Insurance

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Unless you are very prone to accidents, having a fatal accident is extremely unlikely. Calamitous events such as fires and car accidents will be covered elsewhere and as these policies can be riddled with conditions, life insurance is preferable.

So ladies, the message is that even though there are many types of insurance, and having some cover is a good idea, you need to pick carefully. Generally, the broad based types of insurance that offer cover for different potential events is a wiser investment. Also, the best contingency is having a savings fund you can dip into instead of wasting money on 15 Types of Insurance You Don’t Need.

What's the most useless insurance you've had?

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