Stop Taking Out a Policy For Something That Is Already Covered

It sounds so silly but it happens all the time. Many people out there buy policy for something that is already covered by another insurance policy they have. Too many insurance products offered in the market with various specialties sometimes can make you feel like needing something that you actually don’t, or worst, you buy something that you already have only because it has a different name with the one you already have.

This mistake also commonly happens because a lack of attention to what it is written in the policies we already have or the one that we are about to buy. It is important to know the details of what those policies cover and what are not, simply by reading the fine print carefully we can actually avoid making these stupid mistakes and save our money.

I will give you few examples of what type of insurance people usually buy even though actually they are already covered for the risks stated in the policy:

Mechanical Breakdown Insurance
This is usually offered to you when you buy a new car, could be from the car dealer or from your bank when you finance your car. Many people buy this kind of policy to protect their valuable new car, but think again, a new car is still under warranty which means it is already covered by that warranty.

Flight Life Insurance
Nowadays we can find many agents selling this kind of insurance especially at the airport. It gives you coverage if you get hurt or die in a plane crash, but if you already have health and life insurance don’t bother buying it, it is already covered.

Identity Theft Insurance
This insurance protects you from identity theft, but it only covers the expenses you make in restoring your identity, it doesn’t pay back the money stolen from your bank account and don’t even cover lawyer fees. So it is a bad buy, besides, take a look carefully to your homeowner policy, there is a big chance that you are already covered for identity theft with your homeowner insurance.

Rental Car Insurance
If your car is stuck in the mechanic workshop you might need to rent a car, and when you rent a car the rental counter usually offer you to buy rental car insurance. This is actually an important thing to obtain, but before you decide to reach your wallet try to check your auto insurance and credit card company, there could be a protection already for the car you rent.

Mortgage Life Insurance
If you have an active mortgage, this insurance will guarantee the payment if you die. But take a look at your life insurance, it might has already been covered by it, or if it has not, it would be better and cheaper to cover it along with your life insurance by having an extra coverage.

Credit Life Insurance
Similar to mortgage life insurance, you better go with your life insurance especially if you obtained a life insurance from a reputable company.

Those are just few examples of many cases like these happen, the most important is you must know what type of risks that you have already been covered and what you really need, so you won’t have to waste your money for something useless.