Three Types Of Insurance You Do Not Need
Below is a MRR and PLR article in category Finance -> subcategory Wealth Building.
Three Types of Insurance You Can Skip
Overview
Insurance is typically meant to shield you and your family from financial setbacks due to unforeseen events. However, not all insurance policies offer genuine value. Some cost more than they benefit and are best avoided. Here are three types of insurance you can confidently pass on.
1. Life Insurance from Credit Card Companies
Credit card companies may offer insurance to cover your card balance if you pass away. If you already have life insurance through another means, such as a personal policy or your employer, this extra insurance is unnecessary. It's often more expensive for duplicate coverage you don’t need.
2. Rental Car Insurance
When renting a car, rental agencies often suggest additional insurance. However, if you already have auto insurance, it likely extends coverage to rental vehicles. Confirm with your insurance provider, but generally, your existing policy covers you regardless of the car you drive. Even if your policy requires adding a rider, it’s usually cheaper than paying the rental agency’s daily rates.
Exceptions include:
- Business use: Verify if your employer’s policy covers rental cars for business.
- International travel: Check with your insurer about coverage outside the U.S.
3. Unreasonably Low Deductibles
Though not a distinct insurance type, opting for low deductibles is often unnecessary. Many prefer low deductibles for peace of mind, but they may rarely need this safety net. Increasing your deductible can lower your premiums, and it’s wise to “self-insure” for smaller claims by setting aside those savings.
If you decide to raise your deductible, deposit the savings into a dedicated account to cover minor expenses that fall below your new deductible level.
Conclusion
Specialty coverages like these are often encompassed within broader policies you already own. They're pricier because of higher administration costs, and guess who bears that expense? You do. By focusing on comprehensive policies and avoiding unnecessary extras, you can save money without sacrificing essential coverage.
You can find the original non-AI version of this article here: Three Types Of Insurance You Do Not Need.
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