4 Types of Insurance You Might Not Need

Insurance is supposed to protect you from the unexpected. The idea is you pay a little over time and the insurance company then covers the financial burden if something were to happen.

However, it seems like there are now insurance policies for all sorts of things and they’re not always worth it.

It’s important when considering the following insurance options to think about the risks and rewards of insurance. It’s a decision between peace of mind or cutting costs.

Rental Car Insurance
Fixing a damaged car can be expensive so buying insurance when you rent seems like a wise decision. But that is not always necessary – If you carry regular car insurance, you may already be covered. Check your policy ahead of time to save some money. If you charge the rental to your credit card, many credit card companies also offer some coverage.

Extended Warranty Plans
These plans are offered when you buy many different items, especially electronics. You may be tempted to sign up for an extended warranty to cover the cost of repairing or placing the items but this is a warranty for the time after the manufacturer’s warranty is up. The manufacturer’s warranty already covers you for a specific amount of time.

Cellphone Insurance
If you’re reading this right now through a cracked phone screen this might be a wise investment. But many policies have a deductible and charge you monthly. Plus, some plans don’t take effect for a set period of time and if something happens before you, it’s up to you to pay. It’s important to do the math on the plan you’re considering purchasing to make sure they work for you.

Pet Insurance
Lets face it, pets are often part of the family and it’s tempting to think they should have health insurance just like other family members. However not all policies are equal and some cover only emergencies and you’ll still be paying out of pocket for regular vet visits and medicine. Many of these policies have high deductibles and low lifetime limits.

Doing your research and reading the fine print before purchasing a pet insurance plan is a smart move. As with all financial decisions, you have to think about your specific situation. Insurance policies can give you peace of mind but you should learn about the plan you’re buying is worth it.

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