Do You Really Need That Insurance Coverage? - By: Lee MacRae

Do you feel that buying an insurance policy is always the best thing to do? Have you ever considered that there may be insurance policies that are simply unnecessary? Getting the most bang for your buck and spending your money wisely on insurance policies actually means being sure you actually need the coverage. Follow along as we discussed a few areas where you may be able to save considerable money by not buying a particular coverage.

Comprehensive and collision insurance coverage on your automobile. What happens if your car is not worth very much money? You may end up spending more on the collision and comprehensive part than you could ever get back in an insurance claim for an accident. Clearly, you have to seriously take a look at the value of your car versus the money you have to spend to cover it. Is it really worth it? Probably not.

Identity theft insurance: with all the scare about identity theft these days, many companies have come up with identity theft insurance. The idea may be a good one, but make sure you know what you are being covered for. You may already have rights and protections under federal or state or provincial laws that will help you recover from identity theft at no cost. Just make sure you know and understand each and every one of your automatic rights under the law. Once you have a full understanding of that they can make a better decision as to whether a commercial company can offer you enough extra to make the premiums worthwhile.

Having the maximum coverage for personal injury protection on your car insurance. Check out your health insurance policy. Are you covered there? If you are covered, then you have no need to spend money on something you don't need. If you still feel you would like additional coverage then buy the minimum on your auto insurance.

Credit insurance policies are often sold along with home mortgage loans. They promise to cover the mortgage payments in case tragedy strikes the homeowner. But credit insurance policies don�t insure the full term of the loan! They usually on;y cover the first 3 to 5 years of the loan, even though your mortgage may be for 30 years! And single premium credit insurance is usuaully overpriced when compared to term life insurance.

Insurance on your outstanding credit card balances: This type of insurance coverage can be costly and there are a lot of loopholes that can trip you up long before any benefit is paid. Read the fine print...and then the fine, fine print before you take this kind of insurance.

Keep in mind that by avoiding the above situations in various insurance policies, you will not necessarily reduce your risk. You could still end up with a loss in any number of these circumstances. But understand that what you are doing here is making sure that you spend money wisely on the insurance that you do need. You don't want to waste your valuable resources on insurance policies that simply don't make any sense.

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