4 Types of Insurance You Probably Don't Need

Some types of insurance you should have, such as life insurance, if you have a family depending on your income for their day to day living expenses. Some types of insurance you must have, by law, such as car liability coverage if you drive a vehicle on public roads in almost all of our United States. But some types of insurance are unnecessary and, although they may appear appealing when being described by an insurance salesman, you not only don't need them but they are likely to just be a waste of your money. Here's a list of a few insurance policies you're probably just better off without.

1. Child Life Insurance – child life insurance may look appealing at first because of its low cost and promised accumulating cash value, but that same money put into your child's education fund, savings account or even into your own additional life insurance coverage may be considerably more valuable. Life insurance is designed to provide financial protection to those depending on your income, and children typically have no income upon which dependents rely.
2. Flight Insurance – if you already have a life insurance policy in place, taking out extra coverage before flying in an airplane is redundant. Deaths in airplane crashes are relatively rare, but if you are unfortunate enough to suffer such an event, your standard life insurance policy already has you covered.
3. Rental Car Insurance - `buying extra insurance from a rental car company when renting a car may also be redundant, since your personal car insurance policy likely already covers you in a rental car. Double check your car coverage to make sure, and if you're not covered by your personal policy then the small fee charged by the rental car company may be worth the cost.
4. Auto Collision Coverage – if you're driving an old model car that's not worth a whole lot of money, you're likely better off forgoing the inclusion of collision coverage on your policy. This may also be said of the comprehensive portion of your policy. Instead, put the money you save on premiums in a car repair/car replacement fund to be used in the event your vehicle gets damaged or is stolen. For newer, more expensive cars, however, full coverage is probably your best bet.

These are just a few of the many types of insurance you can do without. Check here for more.

Do You Need Additional Car Insurance When Renting a Car?

If you have occasion to utilize the services of a car rental company you’ll likely face the decision of whether or not to buy the supplemental car insurance coverage offered. The salesperson writing up your rental contract may highlight the importance of buying this insurance, which may include:

• A loss-damage or collision-damage waiver which, although not technically insurance, protects you from financial loss should your rental car become damaged or stolen
• Liability protection in case you cause bodily injury or property damage to a third person
• Personal injury accident protection, which covers you and your passengers in the event you’re involved in an accident and medical services are required. This covers medical costs, ambulance costs and includes death benefits
• Loss of personal effects protection, which covers your personal property in the event that anything is stolen from your rental car

Don’t Buy What You Already Have

Although typically recommended by most rental car salespeople, you’ll find in most cases that their car insurance policies are redundant because you already have similar coverage as part of your personal car insurance or homeowner’s insurance policies. One thing the car rental company has going for it, however, is that many of their customers have no idea exactly what coverage they already have. In an effort to be safe rather than sorry, you may feel the need to buy additional protection.

The best idea for you is to read through your car insurance policy to see exactly what coverage you have that applies to rental cars. If your personal vehicle insurance coverage includes collision and comprehensive, this will likely cover rental cars too. Your personal policy definitely covers liability (since this is required by law here in NC), but if you don’t have car insurance because you don’t own a car you should buy the liability coverage.

Supplemental personal injury insurance shouldn’t be needed if you have a good health insurance policy and death benefits would be covered by your life insurance policy if you have one of these. Finally, protection for your personal property is likely provided under your homeowner’s insurance policy.

Credit Card Coverage

Lastly, when you pay for your rental car with a major credit card, which most companies require, you may have built-in coverage with your card (although this may vary from one card to another). Check it out. If you have questions, call your credit card and insurance reps for clarification.