Insurance is supposed to cover us in case the unexpected occurs. However, many insurance companies have used emotional scams and manipulations in order to persuade customers to take out lots of unnecessary insurance. Certain types of insurance are important and most people should take them out, life insurance, health insurance and car insurance but amongst these there are other types of insurance that you probably don’t need. They are only taking money out of your wallet and putting it in someone else’s. There are a few types of insurance you can safely avoid.
Most large products, in particular the electrical ones like the plasma television or new refrigerator, already come with a warranty for one or two years. If something is going to go wrong it’s usually going to happen within this time frame. Listening to the salesman trying to get you to insure yourself and your product by purchasing an extended warranty is only going to benefit him and the store, because he’s going to get a higher commission, the store will make more money, and you probably will be out of pocket and won’t likely use the extra warranty.
So it would be nice to cover your pet but it’s not going to pay for the vet bills when they arise. Many people are pet lovers and treat their pets as family members. That’s fine. Taking out pet insurance, however, is a little bit too much. It’s an unnecessary amount that your spending that could easily go towards future unexpected or planned vet bills. Maybe you’d like a proper burial for your pet but you can do that yourself without having to fork out money for pet insurance.
Credit card insurance
Taking out credit card insurance is just an extra amount of money leaving your pocket, instead you can use that money to pay off your credit card. This type of insurance could help when you’re out of work and can’t afford the repayments, but you are unlikely to use it when you really need it, especially if it’s a short term fix. Once you’ve completed the paperwork you probably will be able to make regular repayments. Don’t let the credit card company fool you into believing you actually need credit card insurance. If you’ve got insurance in case you’re out of work, it will be enough.
Most people when they go on holiday take out travel insurance. Travel insurance covers them for all the things that may go wrong during the course of the flight or the holiday. In that case, taking out flight insurance is just a waste of money. You’re only paying twice for the same thing. Stick to traveller’s insurance when you’re taking a holiday.
Before taking out any type of insurance, consider your options. Do your research. Talk to people who are insured and always get as many quotes as possible. Not every company offers the same deal. More importantly remember to read the fine print because you want to be certain what you are covered for in case an emergency arises.