What Car, Life, and Travel Insurance Do You Really Need?

One important way to reduce your overall insurance costs is to avoid purchasing insurance policies that you do not need. So, which car insurance, life insurance, and travel insurance policies are not needed? 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 losing 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 on your car insurance: This is not necessary for automobiles that have little or no value.

2. Maximum personal injury protection coverage (PIP) on your car insurance: If you have a when you have a good health insurance policy, your injuries should be covered. If you prefer some protection, just buy the minimum.

3. Roadside assistance: If you already belong to an automobile club like AAA, you don't need this included with your car insurance.

4. Mechanical breakdown insurance: If you currently own a new car or have a leased vehicle that is still under warranty, you don't need this added to your car insurance.

5. Rental car insurance: If you have a current full coverage policy, check with your agent to see whether you're covered. Also, check with your credit card provider - it may offer coverage if you use the card when renting.

6. Life insurance: If you are single and have no dependents (this includes avoiding life insurance for children!). Find out if your are covered through your employer.

7. Travel insurance: If your current health insurance policy covers you abroad, you probably don't need further coverage.

8. Extended Warranties on Appliances: In the end, these can cost more than just buying a replacement appliance.

9. Insurance on outstanding credit card balances: This type of insurance can be costly, and there are a lot of loopholes to go through before any benefit is paid.

10. Credit Insurance: This 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.
Bobbie Sage

Enjoy
Lorette
http://www.make-up-tip.com