By Clark Howard
You can get insurance on almost anything — computers, phones, trips, your identity, your credit, your pets and even home warranties! But should you?
You probably don’t need these 7 types of insurance!
Single-issue insurance policies are generally considered a ripoff by many consumer advocates, including Clark. Examples of such policies are those that only cover one specific scenario such as mortgage life insurance, cancer insurance and accident insurance.
Here are seven policies you can avoid in good conscience, according to Clark.
They’re a common sell on electronics of all kinds, but Clark says they’re completely unnecessary. Want proof? Modern TVs only fail 3% to 4% of the time, according to Consumer Reports. Why would you pay extra for something that has a 97% likelihood of giving you no trouble at all?
If something goes wrong in your home, the warranty companies are brutally difficult to deal with. They require you to use their contractor only. That contractor may or may not come on schedule while you’re burning up in the heat of summer without AC or freezing in the dead of winter without heat, as just two examples. And then you’ve got a deductible on top of that!
Clark says home warranties are not worth the paper they’re written on!
Mobile phone insurance
Cell phone insurance typically runs about $120 a year. You have a deductible to meet — usually anywhere from $50 to $200 — and after paying that you often get a refurbished replacement phone. Not necessarily a new one!
Identity theft insurance
Don’t pay somewhere between $9 and $15 each month for an identity theft protection package! You can get similar protection for free.
This company is offering a $1 million free identity theft insurance policy to all customers who sign up for their absolutely free service!
Credit monitoring keeps tabs on your accounts so you’ll be alerted in the event of identity theft. But Clark says there’s a better and cheaper option out there. It’s called a credit freeze.
Chronic diseases generally aren’t covered, and insurers often won’t pay for known defects among certain breeds. And of course, no insurer covers pre-existing conditions. Watch out for a maximum limit on treatment for individual illnesses too.
For more information follow this link, clarkhoward.com.