There are some types of insurance that you cannot do without. Most states require drivers to purchase auto insurance. It is wise to purchase homeowners insurance and life insurance. It is difficult to pay your medical bills without health insurance. On the other hand, there are some types of insurance that you probably don’t need.
You probably don’t need wedding insurance. Obviously, this type of insurance is designed for people who are currently going through the process of planning their weddings.
One of the protections it provides is financial reimbursement if a vendor brings the wrong flowers or the caterer doesn’t show up. If you pay by credit card, it is possible that your credit card company can provide some of that same type of protection.
You probably don’t need identify theft insurance. You need to understand that the purchase of this type of insurance doesn’t mean that you will never become a victim of identity theft. It doesn’t work that way.
It costs an annual fee, and requires you to pay down a deductible before it will help pay for expenses incurred as a result of someone stealing your identity. Instead, see if your credit card companies offer some financial protection in case of identity theft.
You probably don’t need travel insurance. Will your family be traveling far enough to require the purchase of plane tickets this Summer? If not, then travel insurance isn’t going to do much of anything for you. Travel insurance covers things like lost luggage and expenses due to a canceled, interrupted, or delayed trip due to a reason that is beyond your control. If you are planning a “stay-cation”, then you don’t need travel insurance.
You probably don’t need cell phone insurance. Many of these types of insurance plans come with a bunch of exclusions. For example, a lot of them won’t cover the repair or replacement of a phone that has experienced water damage or that was dropped. Most come with a deductible that you would have to pay down before the cell phone insurance kicks in and starts covering things.
Personally, it seems to me like buying this type of policy is the same as spending a lot of money for absolutely nothing in return. If you have a smartphone, it probably comes with a manufacturers warranty, leaving you with no need to buy extra insurance coverage for it.
Image by Cheon Fong Liew on Flickr