5 Insurance Policies You Don't Need
January 16, 2011, By Steve Thompson 31 comments
I was raised in a family that worshipped at the altar of insurance. If it costs more than $200, it better be covered by some form of insurance. Because what if it breaks? Or giant trolls break into the house and throw a kegger? But I don't think my parents realized how much money they flushed down the toilet by insuring everything not nailed down.
Pet Insurance. We were the typical nuclear family: two parents, two kids, two neurotic but lovable dogs. Our dogs were always insured growing up, but mine aren't. If you find a good local vet, and your pet is reasonably healthy, pet insurance is often a waste of money. Sure, he could develop a terrible disease that costs thousands of dollars in vet bills, but it's that kind of thinking that leads to insurance overkill.
Cancer Insurance. I don't think my parents bought this type of insurance, but it's growing increasingly popular. This is an example of fear-based insurance overkill wherein consumers buy a policy "just in case" and insurance companies rely on their customers' terror to sell the product. According to MSN, however, your regular health insurance should be sufficient to protect you if you are diagnosed with cancer, and the exclusions and requirements attached to this type of policy can render it not only redundant, but patently useless.
Collision Insurance. It drives my dad up the wall that I don't carry collision insurance on my six-year-old Mazda truck. But come on! Paying more than the vehicle is actually worth every couple of years is definitely insurance overkill, especially when the payout will not put much toward a new car should I get in a devastating accident.
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