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How To Avoid Unnecessary Insurance

By Jason Markum

Insurance is just a fact of life in American society (and probably most other places too). Some studies show that Americans spend almost 15% of their disposable income on insurance alone. Sometimes they are certain insurances you just can’t get out of buying, for instance you are required by law to carry it; such as car insurance.

But there is some insurance that you just shouldn’t buy no matter what, and that’s what I am going to talk about in this article today.

Sure, we all need insurance. If you’ve got a house mortgage, you need homeowners insurance. If you own a car, you need auto insurance. If you have a family that depends on your income, then you need life insurance to look after them if anything catastrophic happens to you like death. And everybody should have health insurance of some kind.

But there are many kinds of insurances being marketed today that you just don’t need, and many times these specific insurances are the ones that really get pushed on people because they don’t really know enough about it to make an informed decision; and salesmen can be pushy.

One type of insurance that you should not usually buy is automobile medical insurance. If you have regular health insurance, it will usually cover any health expenses that arise out of automobile accidents so you don’t need additional special medical car insurance in most cases.

Another type of insurance that you don’t need is mortgage insurance. I’m not talking about homeowners insurance, you need that… I’m talking about mortgage insurance; that is insurance to protect your family against the consequences of not being able to pay the mortgage should you die. Your regular life insurance should cover this adequately on its own, which is the main reason why you have life-insurance to begin with.

Air travel insurance is another type of insurance that you really shouldn’t purchase. Yes, it’s usually very cheap sometimes as little as $10 per flight. But again, if you die in an airplane crash your regular life insurance should cover your family’s immediate needs.

Cancer insurance is another insurance that you may not need. Again, your regular health insurance should cover this and you don’t need any kind of special addition in most cases..

Vacation rain insurance is another type of insurance that you probably don’t need. Insurance companies make these policies based on incredibly accurate meteorological data, and they’re not in the business of throwing their money away which means that they’re not going to insure you unless they’ve got a pretty good idea that it’s not going to rain; which means you probably won’t collect. But again, these aren’t very expensive policies so suit yourself.

These are just a few of the types of insurance policies that you should not waste your money on. Of course, as a disclaimer, everybody is different, and everybody’s circumstances are different so don’t take my advice, make up your own mind.

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