Certain types of insurance policies can be a wise investment and can help prevent you from substantial financial loss later on down the road—not to mention, some types of insurance are required by law. But what types of policies are the ones you might be able to avoid purchasing completely? The following are some types of insurance you might not need at all:
Rental car insurance
Repairing a damaged vehicle can be expensive, so purchasing additional coverage when you rent a car might seem like a good decision. But if you’re already paying for auto insurance for your own car, there’s a good chance you’ll already be protected. Check the terms of your policy to find out, so that you can potentially avoid buying this additional coverage. You can also check with your credit card company, as some lenders will also offer rental car coverage if you charge the car rental to your card.
Credit card fraud insurance
Using a credit card for transactions will come with some level of risk. Your credit card information could get stolen or lost, potentially resulting in various fraudulent charges. A number of insurance companies provide coverage for these scenarios, but it’s usually not necessary, as credit cards usually already come with sufficient protection for their users.
If you live in a low-lying coastal area or other location that is prone to flooding, then you’ll need to purchase flood insurance if you’re a homeowner. However, if your area receives little to no flooding, you’re better off saving your money.
Diseases, such as cancer, are often very expensive to treat. As a result, some health insurers offer cancer insurance. This type of insurance has been around for many years, but this type of policy tends to be overpriced and you may already be partially or fully covered under your regular health insurance policy.
Airline life insurance
Air travel is statistically the safest way to travel, but accidents involving aircraft tend to be catastrophic. As a result, there are very specific life insurance policies that will pay out in the event that the insured passes away in a plane crash. Because this is a very rare and unlikely way to pass, it’s often recommended to skip this type of insurance altogether. Instead, opt for more practical life insurance and/or travel insurance policies.