Insurance - Don't Buy Insurance You Don't Need

One important way to reduce your overall insurance costs is to avoid purchasing insurance policies that you do not need. The list of policies one may not need will be different for everyone because of the difference in individual risk. For example, someone who does not own a home would not need to purchase a homeowners policy because there is no risk to them of loosing their home. That is an obvious example, but there are times when one's risk is very small and suffering the consequences of the loss is a better risk than purchasing a policy. Below is a list of insurance policies that most people would not need to purchase for various reasons (reasons are listed when applicable):
Insurance to Avoid:

1. Comprehensive and collision coverage for automobiles that have little or no value
2. Personal injury protection coverage (PIP) or just buy the minimum if you have a good health insurance policy
3. Roadside assistance if you already belong to an organization that offers this
4. Mechanical breakdown insurance if you currently own a new car or have a leased vehicle that is still under warranty
5. Rental Car Insurance if you have a current full coverage policy or a credit card that already provides this insurance (check with your agent to see how much your current policy will cover)
6. Life Insurance if you are single and have NO dependents (this includes avoiding life insurance for children!)
7. Travel insurance if your current health insurance policy covers you abroad
8. Extended Warranties on Appliances (this in the end may cost more than just buying a new one)
9. Insurance on outstanding credit card balances (this type of insurance can be costly and has a lot of loopholes to go through before any benefit is paid)
10. Credit Insurance, which is voluntary insurance on your mortgage (a typical life insurance policy would be a better option)

By avoiding the above policies, you will not reduce your risk and you still may experience a loss in any or all of the above categories, but the risk for most is so small it's just not worth the price of the insurance.

More Insurance Articles

Are You Covered? Tips for Getting the Best Homeowner's Insurance

Don't take any risks when it comes to your home investment. Get the best possible insurance coverage to protect you against fire, lightning, and other disaster ...

Comparing Auto Insurance Quotes

Auto insurance quotes come in all shapes and sizes. Here is some helpful information that can help you compare apples to apples when looking at multiple quotes ...

Health Insurance - The Cure for Medical Bill Headaches

When medical bills are starting to cause more harm than they were meant to cure, you will be happy if you have good health insurance coverage. ...

Insurance - Don't Buy Insurance You Don't Need

One important way to reduce your overall insurance costs is to avoid purchasing insurance policies that you do not need. ...

Life Insurance - Make the Investment

For the sake of our loved ones, everyone should carry life insurance coverage. There are many ways to get comprehensive life insurance coverage without breakin ...

Life Insurance: Which Policy Is Right for You?

No one likes to think about needing life insurance, but the security and peace of mind it can provide makes it well worth the planning. It can be a daunting tas ...

Risk Free Home Insurance

If you need home insurance or homeowner's insurance, be sure you read about getting risk free coverage. Nothing is more important with such a large investment ...

Shop Around for The Best Auto Insurance

Buying car insurance? Shop for the best car insurance quotes to get the best overall coverage and save money while you are at it. ...


Home | Categories | Newsletter | Search | Terms | About | Contact
Website Design and Marketing by Jump Start Marketing