Insurance
The purpose of insurance is to protect yourself and your family from the potential financial loss caused by a serious illness or catastrophic event .
There are several types of insurance that provide you with little benefit when compared to the cost and these are those that should be avoided.
Just say NO to these 3 types of insurance.
Life Insurance Sold By Credit Card Companies
Your credit card company will offer you insurance that pays off your credit card balances when you die. The premiums are fairly high for the amount they would pay off. If you have a private life insurance policy or your work carries one on you then your family will be able to do the same thing at a much lower cost to you.
Rental Car Insurance
Whenever you rent a car they will ask you if you want auto insurance in case of an accident. Typically the car insurance you carry on your own automobile will cover you while driving a rental car. Also many times the credit card you use to pay for the rental car also has rental car insurance.
If the car rental is for business use, you will want to check to see if your employer's business policy covers you. If you will be driving outside of the US, your agent can tell you if you will require special coverage.
Unreasonably Low Deductibles
This is not a "type" of insurance, but it is something you should look closely at. You carry the lower amount for the peace of mind, but nowadays if you were to actually make a claim on the it is often detrimental to you.
If this is the case, that filing a claim is going to hurt your insurance coverage, you will definitely want to only file a claim that you really can't handle. It really makes more sense to raise your deductible and use the savings from your lower premiums to “self insure” by putting a little away in savings. This may take a little self constraint to do, save the difference, but it will also give you peace of mind.
Specialty-type coverages, like the ones mentioned here, are more expensive to administer thus the reason they are so much more expensive. You can usually be covered with another good broad-based policy that you already have, such as life insurance, you current car insurance or just by being smart.
