There are some types of insurance that you just don’t need
Purchasing insurance is a way to manage risks. Buying insurance allows you to transfer the cost of a loss, such as a car accident or house fire, to your insurance company in exchange for paying your premium. The insurance companies invest the money they get from their clients so they will be able to pay out when you file a claim.
There are a number of reasons to get insurance. Insurance makes it possible to:
- Own a home
- Drive a vehicle
- Maintain your standard of living should you become disabled or critically ill
- Cover the costs of healthcare
- Provide for your family in the event of your death
There are many types of insurance on the market — everything from earthquake insurance to kidnap and ransom insurance to political risk insurance! However, the types of insurance you need will depend on your lifestyle, where you live, if you own a business. Generally speaking, most experts agree that there are a few types of insurance that everybody should have:
- Auto insurance
- Health insurance
- Life insurance
- Long-term disability coverage
- Homeowner’s insurance
However, if you own a business, you’ll want to have additional coverage such as worker’s comp, professional liability insurance, property insurance, and product liability insurance, to name a few.
Many other types of insurance will have little value for you, and they’re often full of exclusions or riders. So, what types of insurance don’t you need?
Don’t waste your money
The reason you’re purchasing insurance is to ensure that you’re adequately protected because accidents and other disasters can happen. If you aren’t adequately covered by insurance, it could result in financial ruin. However, there are many types of insurance that most people won’t ever need to purchase. If you’re thinking of buying one of these types of insurance, consider whether or not you’re going to get any return on your investment.
Some examples of insurance that you shouldn’t waste your money on purchasing include:
- Travel insurance
- Collision insurance on an old car
- Identity theft insurance
- Extended warranties
- Children’s life insurance
- Home warranties
- Dental insurance
- Rental car insurance
- Pet insurance
Talk to an insurance broker
With so many insurance options available today, making smart choices about the types of insurance you do need can be complicated and confusing. Using the services of an insurance broker can save you the time and hassle of having to research insurance coverages as well as different insurers.
An insurance broker will sit down with you to discuss your insurance needs. Because they have built up long-standing relationships with many of the major insurance carriers, insurance brokers get better rates than you can by going it alone. And, most importantly, insurance brokers work for you, not for the insurance companies.
Daniel Fraisse, insurance broker in Los Angeles, has developed a reputation, over the years, for being hard-working and dedicated to helping clients get the best deal possible on insurance. Check out our website to learn about the insurance services that we provide.