Insurances You Probably Don’t Need

As I previously mentioned, a few types of insurance are a necessity. But there are also insurances you can definitely do without.

Mortgage Life & Disability Insurance

All financial institutions will try -very hard- to sell you life & disability insurance on your mortgage.

Don’t buy these from your lender, as they are not advantageous for you. The premium you pay remains the same for the life of the mortgage when both your coverage and the mortgage amount decrease with time.

Any monies will also be paid directly to the bank, and more often than not, you or your family can’t collect on the policy.

Instead, get your own insurance.

Credit Card Balance or Payment Protection

Credit card companies offer this insurance to pay a portion of your balance if you loose your job or become sick.

If you have disability insurance and/or an emergency fund, you definitely don’t need this. Premiums are hefty, and sometimes only cover you for a small amount.

Accidental Death & Dismemberment (ad&d)

Again, if you have life and disability insurance, you don’t need this either.

Extended Warranties

Check the current warranty first, as well as the manufacturer’s requirements, before shelling additional money for this.

Carefully read the fine prints of the extended warranty. They usually contain many exclusions. If the price exceeds 20% of the item you want to cover, take a pass.

Car Rental Insurance

If you pay for your rental with credit card, you can decline the insurance offered. If you have an existing car insurance with your province, your coverage may transfer to the rental. It’s the case in BC.

Comprehensive Coverage for Older Cars

if your vehicle is over 10 years old, you don’t need full coverage.

There are definitely more cash-grabs insurances you can skip without blinking or thinking twice. It is crazy what insurers come up with nowadays!