Insurance Policies You May Not Need
Insurance is an excellent way to keep you and your family protected. However, not everything has to be insured. There are certain insurance policies that may not be required. Before you fall into any of these types of policies, here’s what you should reconsider buying.
- Accidental death and disability insurance – This is something that a term life insurance policy or long term disability policy can cover. There may be a slight need to purchase a separate policy like this. If you still think you really need one, be sure to read all the fine print and weigh the cost of the policy versus the benefits before you decide to buy.
- Cell phone insurance – Buying a good case for your phone is really the best insurance you can buy to protect your phone. If you’re still worried, then you can always put the money you’d be spending on a monthly insurance policy into a savings account. If you somehow manage to find yourself needing to buy a new phone, you’re going to save on it.
- Children’s life insurance policy – It’s tempting to get life insurance for your child, but the chances of a child dying are very slim and if that happens, you may be able to afford the service fee.
- A child won’t have bills to pay, so actually a life insurance policy for a child is just for funeral expenses. Often funeral homes will offer discounts on children’s funerals if you have a financial need.
- Mortgage life insurance – Buying separate insurance to pay off your mortgage in case you have to die may not be the best idea. A term life insurance policy can cover that and other costs as well, at a lower monthly cost to you. Look into term life insurance policies rather than mortgage life insurance.
- Short term disability insurance – If you have enough money in your savings account to float you for 3-6 months, then having a short term disability insurance policy may not be a must for you. Use the money you would pay for such a policy and add it to your savings account.
- Extended warranty – In most cases, the warranty that the manufacturer offers with the item you purchase is more than adequate, and you don’t need to purchase an extended warranty plan. Putting the money you would spend on warranty renewal into savings and letting it earn interest will more than cover you if something goes wrong and you need payment to repair the damaged item.
More Not Needed
- Private Mortgage Insurance.
- Extended Warranties.
- Automobile Collision Insurance.
- Rental Car Insurance.
- Car Rental Damage Insurance.
- Flight Insurance.
- Water Line Coverage.
- Life Insurance for Children.
As with anything, you should look at your personal circumstances to see if it is a reasonable expense for you to create one of these different types of policies. You probably won’t need it, but you certainly don’t want to say no if you get it for free.
If you’re not sure if your lifestyle means it makes sense for you to buy one of these policies, then you may want to talk to a financial planner. He or she can help you determine if it’s something you could use for your savings, or if this type of policy would be in your best interest.
Questions You Should Ask About Your Vehicle Insurance
When you buy auto insurance, you usually do so because it is required by your state to register the vehicle. It’s also great coverage to protect you.
Everyone makes mistakes, even you. Of course you always hope to be innocent in an accident or therefore on insurance someone else has to pay for your damages, but mistakes do happen.
Also, you could end up in a no-fault situation like driving on a closed road or in a parking lot, and insurance might blame 50/50 on both sides. In this case, you want to make sure that things are still covered for your own vehicle.
You buy insurance as a thought. You want to but you never have to use it, you have to use it, you want to have enough to cover yourself. However, you will keep your premiums as low as possible, while also ensuring that you are fully covered. Here are questions you should ask yourself and your insurance company before buying a policy.
1. What is the difference between coverage and collision coverage, and do I need one?
Comprehensive insurance protects you from things like acts of God (i.e. floods, fallen trees, or hail) or theft. Collision covers damage to your vehicle if you hit someone or someone touches you. It is a tight protection to keep your vehicle in case of damage.
If you have a loan on your vehicle or you rent it, then it is likely that you will be required to have coverage and a collision on your policy. This is for the mind of the lien holder, at the same time it makes sense if you own a vehicle that is worth $20,000 or more.
As your car ages and depreciates in value to around $3000, it may not be necessary to have collision coverage and coverage on that vehicle. Your premium costs will be too large for 1-2 years to justify the cost.
If you are an element of your car’s value, you can check online with sites like Kelley Blue Book or NADA to help you determine if this is the coverage you need.
2. Can I get my deduction?
The deductible is the money you would have to spend out of your pocket on repairs to your vehicle if you had comprehensive coverage and an accident. The higher the deductible you have, the lower the insurance premium you will get.
While it’s tempting to say $1000, you need to know if you’ll have it if you need to use your insurance. usually a $500 deduction is common, but it can be lower than that. The lower the value, the higher your insurance premium. So you have to determine where your sweet spot is.
This is also why it is important to know the value of your car and if you are in a comprehensive and collision coverage. If you subtract $1000 and your car is only worth $2000, then there’s no point in paying half the car’s value to fix it. If you’re that tall and your car is worth a little, your insurance company will probably call the total.
3. What discount is available for me?
Most insurance companies will automatically calculate discounts for your insurance such as safe driver, vehicle safety feature discounts, and driver/car double discounts. However, your insurance company may offer you someone else.
If you are a student then they can offer you a discount for being a good student and maintaining a B average. On the other side of the spectrum there may be an adult driver discount where if you are over 55 and successfully complete accident prevention through your DMV, You can receive a discount.
You can get a discount if you refrain from drinking and smoking. There’s a discount if you’re a professional and belong to an organization like a state bar, or a medical board, or even a fraternity/society. There are discounts for owning a hybrid vehicle, taking a defensive driving course, or even maintaining your car’s mileage each year.
If you have several types of insurance policies with one company, such as life insurance or homeowners insurance, then you may also be eligible for a discount.
4. Does my policy cover uninsured or underinsured motorists?
Not all states require you to carry such coverage. If your state does require it, then your agency should know this and include it. If you’re in a situation where you don’t need it, you can still get it. This is definitely the coverage you might want. If you get into an accident and the other person doesn’t have enough coverage to cover it, or isn’t insured, then you’ll want to be covered.
5. Will my insurance company provide me with genuine parts for repair?
If you have an accident, you want to make sure that your insurance will pay for the original parts on your vehicle to repair it, otherwise it will lower the value of your car.
6. Do I have a rental reimbursement?
If your car needs repair and it will take days, then you will want to have a rental car. This is separate coverage that you can purchase on your policy. This can be useful to have, as repairs can take a long time.
Knowing what you’re covered for will save you a lot of headaches if you get into an accident. Things may not go very smoothly with insurance for a variety of different reasons, but having adequate coverage will protect you and your financial interests as well. Support by : https://www.acsplans.com/
“6 Insurance Policies You May Not Need”