Types of Insurance That You Should Never Spend a Dime On by susianatjhai


More Info
									Types of Insurance That You Should Never Spend a Dime On

In a Seinfeld episode where Jerry tries to make up a bit for his comic
routine, he notes telling Elaine that the makers of antacids have quite a
business. They get you take something even before you have any
indigestion. It's a market that's interested in buying product to protect
itself from a problem that doesn't even exist. Insurance isn't all that
different. Most people pay life insurance their whole lives and find to
their disappointment that an Acme safe didn't fall on their head while
they were waiting for a bus, after all. They buy car insurance and never
have the satisfaction of having it totaled in a car wreck. The point is,
that there really are several types of insurance that aren't worth

Let's start with a couple of options for your car -rental car insurance,
rental car damage insurance and collision insurance. When you take out
insurance for your own car, your insurer will usually offer you rental
car insurance. And this is one useless, and expensive add-on. Rental car
insurance is all about thinking really far ahead. This is where you think
about how when your car is in an accident and sitting in the workshop
while they build it back together with superglue, you'll need to rent a
car. They promise to reimburse you for what you spend on car rentals like
this. The problem is, that you're paying for this thing every month for
that one time in 10 years that you'll be in an accident like that and
need a rental car. You'll have paid more for this insurance by then than
you would pay for the rental car if you paid for it yourself. How about
rental car damage insurance - the add-on extra you buy at the rental car
counter? You know why these types of insurance are a bad idea - it's
because you're doubling things. Your own car insurance company will
usually pay for any rentals as well.

Collision insurance for your own car is a useless thing too. It might be
a little difficult to fathom why this is useless. After all, you do want
to be covered for the cost of the repairs if your car is totaled, don't
you? Well, you certainly do - and you do have it already. Every car loan
comes with car insurance included in the deal. If you take out separate
collision insurance, you're doubling things - a great way to spend too
much if ever there was one.

They must sit around and try to think of ways in which to sell you types
of insurance that mean nothing. Flight safety insurance, extended
warranties, and unemployment insurance are the kind of thing they come up
with. Let's face it - your flight isn't going to crash. And anyway, your
regular life insurance has coverage for this already. As for extended
warranties, these are just so wrong in so many ways. To begin with, if
you buy a good quality branded product, and it works well for the one
year or so that you have the manufacturer's warranty, you can be pretty
sure that it's going to be dependable in the hereto for as well. You
might be tempted to get insurance for that huge 60 inch television
sitting in your living room. But for anything less than $5000, you're
just throwing your money away.

To top