What Insurance Can You Safely Skip?

September 06, 2023

Going through life without enough insurance can be risky, but are there types of coverage you can confidently decline? Here are three situations where you may want to skip insurance or similar protections.

1. Car rentals. If you pay for a rental car with a credit card offering rental car coverage including optional collision or damage waiver protection, just say no to the rental agency. For instance, the SchoolsFirst FCU Mastercard's™ MasterRental gives cardholders access to rental vehicle coverage at no additional cost.

Protection covers physical damage and theft of the rented vehicle, towing fees and more. It's important to review the limitations of these programs, as they don't cover personal injury, personal liability, or personal property. Nor do they cover damages to other vehicles, property, or people. This is why you want to ensure you maintain adequate personal auto insurance.

2.  Identity theft monitoring. TV and online ads warn of the real dangers of identity theft. For a monthly fee, these advertised companies monitor your identity online and alert you when they believe your personal information is in danger of being bought or sold. But most credit card companies offer similar protection at no cost. For example, Mastercard ID Theft Protection™  tracks your personal information online, changes to your credit report, works to prevent financial account takeovers.

3. Extended warranties. Retail and online retailers often ask whether you'd like to add product protection to your purchase. You can safely decline if the purchase is eligible for extended warranty protection under your credit card's terms and conditions.

Paying for purchases with some credit cards can also give you access to extended warranty protections, allowing you to decline these offers without worry. While there are restrictions on which purchases qualify under such programs, it's possible to receive an extra 12 months of protection on everyday items. It's easy to file a claim by contacting the credit card company.

In most cases, double coverage is unnecessary. Review existing credit card protections to avoid spending money on coverage you don't need.

Cost savings is one benefit of saying no to extra insurance. But make sure you have adequate protection for your home, car and other assets. If an unfortunate event occurs in the absence of certain types of insurance, you might have to foot the bill to make yourself, and possibly another party, whole again. Before deciding on a policy or optional coverage, it's essential to ask questions to better understand the different coverages and costs, and what discounts might be available. It will help ensure you get the coverage you need for the best price.


CA Insurance License 0I19344