List of 15 Unnecessary Insurance Policies that You Don't Need

Nobody knows the future. Therefore, it is logic that some people worry about what will happen in their future times. For this reason, insurance is one of the answers and preventive steps for the uncertain future and to avoid unwanted things to happen. In response to the worries that people face, insurance companies provide insurance policies as a meant to protect the insurer. Even though, there are certain insurance policies that you do not need. In this section we will list 15 unnecessary insurance policies that you do not need.

These lists of 15 insurance policies that you do not need will perhaps help to be more effectively decide whether to take one of these 15 unnecessary insurance policies.

1. Private Mortgage Insurance
The reason that private mortgage insurance is not important is that because in private mortgage insurance the borrower pays for this insurance but derives no benefit. There actually are several ways to stay away from paying for this unnecessary policy. Private mortgage insurance is required when you buy a home with a down payment of less than 20% of the home's value. The amount of down payment is regarded to be putting you at risk of defaulting on the loan. Therefore, by putting down at least 20%, you can get the private mortgage insurance away. Another step is by putting down 10% and takes out two loans, one for 80% of the sale price of the property and one for 10%.

2. Extended Warranties Insurance
Extended warranties insurance is usually for appliances and electronics. Ironically, the sort of insurance is rarely being used. Hence, extended warranties insurance is not really important, based on its usage for the consumers.

3. Automobile Collision insurance
Collision insurance is designed to cover the cost of repairs to your vehicle if you are involved in an accident. If you have a loan out on the car, the loan issuer is likely to require that you have collision insurance. If your car is paid off, collision is optional; therefore, if you have enough money in the bank to cover the cost of a new car, collision insurance may be an unnecessary expense. This is particularly true if you are driving an old car, because cars depreciate so quickly that many vehicles are worth only a fraction of their purchase price by the time the loan is paid in full.

4. Rental Car Insurance
Most auto insurance policies offer additional coverage for the cost of car rentals, touting it as a useful feature if your car is ever involved in an accident and needs to spend some time in the repair shop. This may sound like a good idea, but in reality, most people rarely rent a car, and when they do, the cost is relatively low and hardly worth insuring against. Although rental car insurance is relatively inexpensive, amortized over the course of a lifetime you are still likely to spend far more than you will benefit.

5. Car Rental Damage Insurance
Many auto insurance policies already cover rentals, so there's no need to pay for this twice. Check your policy before you pay. Depending on where you rent the vehicle, you may also be able to pay a small fee for insurance on your rental when you pick it up at the rental center. If this fee is less than what you'd pay for a year in your old policy, choose the fee over the policy.
6. Flight Insurance
Flight insurance coverage is completely unnecessary. Despite media portrayal, airline accidents are relatively rare, and your life insurance policy should already provide coverage in the event of a catastrophe.

7. Water Line Insurance Coverage
Water companies have made an aggressive push to sell policies that cover the repair of the water line that runs from the street to your house. The odds are in your favor that you will never use this coverage, particularly if you live in a newer home. If you live an average suburban neighborhood and you do need to repair the water line, the distance to the street is short, the likelihood of a problem is low and repair costs are a few thousand dollars or less. The same goes for policies offered by other utility companies.

8. Life Insurance for Children
Life insurance is designed to provide a safety net for your heirs/dependents. Because children don't have heirs to worry about and, statistically speaking, most kids will grow up safe and healthy, most parents should not purchase life insurance for their kids. Instead, use the money that you would have spent on life insurance to fund an education plan or an individual retirement accounts (IRA).

9. Flood Insurance
Unless you live in a flood plain or an area with a history of water problems, don't even bother buying flood insurance. If none of the homes in the area has ever been flooded, yours is unlikely to be the first.

10. Credit Card Insurance
Purchasing coverage to pay your credit card bill in the event you cannot pay it is a waste of money. A far better idea is to avoid running up your credit cards in the first place, so you won't need to worry about the bills. Not only do you not save on the insurance premiums, you'll also save the interest on your debt.

11. Credit Card Loss Insurance
Federal law limits your liability if your credit card is stolen. Your out-of-pocket costs are limited to $50 per card and not a penny more. In fact, many credit card companies don't even try to collect the $50.

12. Mortgage Life Insurance
Mortgage life insurance pays off your house in the event of your death. Rather than add another policy - and another bill - to your list of insurance plans, it makes more sense to get a term-life policy instead. A good life insurance policy will provide enough money to pay off the mortgage and to cover other expenses as well. After all, the mortgage isn't the only bill your survivors will need to pay.

13. Unemployment Insurance
This coverage makes minimum payments on your bills if you are out of work, which sounds like an attractive proposition. A better plan is to save your money and build up an emergency fund instead. You won't have to cover the cost of the insurance policy and, if you are never out of work, you won't spend any money at all.

14. Disease Insurance
Policies are available to cover cancer, heart disease and other maladies. Instead of trying to identify every possible disease that you may encounter, get a good medical coverage policy instead. This way, your medical bills will be covered regardless of the problem you face.

15. Accidental-Death Insurance
Accidental-Death insurance is likely to be unimportant for you if you are not an extraordinarily accident prone. The risk you might have from accident will have been covered by the other insurance policies. Such as; car wrecks and fires. In addition, accidental-death policies are difficult to be collected. Thus, just avoid this insurance for you do not really need this insurance policy.

Given and provided with the above information of list of 15 unnecessary insurance policies that you do not need as above, it is expected that you will be more careful in choosing and purchasing the insurance.  Be more selective so that you can minimize your expense and make a better priority scale for each expense you have including the insurance.