international student life

international student

Insurance Policies you don't need.

Unnecessary policies like Full coverage on car insurance, Extended Warranties, Flood insurance and more.

There are many insurance policies that are sold around that are actually a waste of your money and you will probably not need them at all. Many insurance companies exploit the fact that you cannot predict the future and fear being caught up in a major disaster. So they create many unnecessary insurance policies to nickel and dime you.

Car insurance full coverage

If you buy a new car on a loan, the loan lender will often require that you have full coverage insurance on your car. This is to cover for any repairs if the car has an accident. However if you have paid off your car or It is old, full coverage on car insurance is unnecessary because the insurance company will pay you such a small amount compared to what you paid for the car, that it is not worth it.

This is because cars values depreciate rapidly even if the car runs fine. So if you own your car and it has no loan, you donít need full coverage. You will be fine with just liability coverage which covers the other motorist if you get into an accident.

Extended Warranties

These are warranties that electronic and appliance vendors like to sell to you to cover your purchase past the manufacturers warranties. On the most part, these warranties are worthless because they are never used. If the appliance or electronic you purchased has lasted past the manufacturers warranty, usually one year, then it is unlikely to have any manufacturer defect and will work just fine. So you donít need to buy extended warranty.

Rental Car Damage insurance

When you rent a car, they will offer you to carry a Rental Car damage insurance. This is usually not necessary because the risk of getting an accident is low and also most peoples car insurance cover for damages to any car they may rent.

So if the insurance you have for your individual car has this coverage, there is no need to buy the extra rental car damage insurance.

Flood insurance.

This is usually to protect your house against flooding. If your house is not located on a flood plain, there is no need to buy flood insurance.

Children life insurance

Life insurance is usually to benefit the dependants of the person insured in case they die. Children have no dependants, so it is ridiculous idea to insure them. You can use the money to buy life insurance for the adult to make sure the children are taken care of if the adult dies.

Some other insurance policies you may want to avoid include Mortgage insurance, Credit card loss insurance and Unemployment insurance among others.