Do I Really Need That Insurance?
July 16, 2019
Travel? Pet? Smart Phone? Rental Car? When does it make sense to buy?
Have you ever heard someone say, "I'm insurance poor! I pay so much money for insurance and I really don't know if I need it or not."
Well, as an insurance agent for over three decades I will attempt to offer some advice. I appreciate the fact that a lot can go wrong in our busy lives - from renting cars to taking pets to the vet to buying high-priced appliances. There's insurance (ok, call it extended warranty if you want) for just about everything. The decision to buy the insurance can sometimes be a daunting decision. Let me offer my advice:
Rental Car Insurance
- Buy: If you don't have a car and have no existing car insurance. Also, buy if you are traveling to a location (like Europe) where your existing insurance may not cover you.
- Don't Buy: If you live in a state (like New York) where your personal auto insurance provides liability and property damage. No need to buy the extra insurance at the car rental counter even if the car rental rep gets pushy. If you live in another state contact your insurance carrier to be sure before taking your next trip.
Pet Insurance
- Buy: If you would do anything for your pet, even if it's a $15,000 treatment for cancer or other life threatening surgery.
- Don't Buy: If you are unlikely to opt for expensive medical treatment, even if it is a life-threatening issue. I personally feel pet insurance can be expensive. You really need to budget a set amount of money each year regardless of whether you buy insurance or not. Having a pet is costly. There really should not be many surprises. Plan for the unexpected. It's like raising a kid!
Extended Coverage / Warranty Protection
- Buy: If you're covering a high-value portable device (such as a smart phone) and you're prone to losing or breaking gear. Beware that most protection plans carry a deductible which needs to be paid before coverage applies.
- Don't Buy: If your budget can handle replacing a phone or other electronic device without a serious financial challenge. Keep old phones as backups. Electronic devices lose their value fairly quick (about 3 years), so you don't want to pay for insurance if your phone is worth a minimal amount. Appliances like refrigerators or washing machines usually carry a manufactures warranty for the first few years. It gets expensive to add coverage beyond this early period. I usually steer clear of these extended plans. It seems like appliances don't last more than 8-10 years anymore (unlike the ones in the "good-old days"), so you may just need to plan accordingly.|
Travel Insurance
- Buy: If you're paying for an expensive trip that is non-refundable, specifically lengthy cruises or all-inclusive destinations. Be sure to read the fine print for what is considered insurance and what is not. Sometimes these are tricky situations as you may have to prove a certain medical issue or catastrophic event. Personally, I like some of the new Trip-Flex benefits some airlines are offering where you can change the dates of your trip without incurring additional expenses.
- Don't buy: If your flights or trips are relatively minor or if you book using a credit card that gives you free cancellation insurance. I rarely purchase travel insurance for domestic trips that are short in nature.
Homeowners Insurance Riders Covering Valuables
- Buy: If you have individual pieces of jewelry, collectibles, or art that is worth more than $2500. A typical home insurance policy provides some coverage, usually $1000 - $2500. You would need to have appraisals showing value of each item as this is used to determine the cost of insurance.
- Don't Buy: If you have a home insurance policy that provides higher limits of coverage. Some policies today provide up to $10,000.
Auto insurance companies are facing unprecedented rate increases due to inflation and the increasing cost of repairs. One of the most simple ways to assure your auto insurance rate is providing the best value is to take a defensive driving course - which is available to you online ! For residents of New York, the Improv Traffic School is currently offering their top-rated, fully-online defensive driving course for under $30, making it easier and more affordable than ever to both become a better driver, and save on auto insurance premiums. Some benefits of taking the course include: A guaranteed reduction of up to 10% on insurance rates - The certificate is recognized by all New York State auto insurance companies. Reduction in points on your license - For people with points attached to their driving record, the Defensive Driving Course can help eliminate those marks on your driving history. A fully online learning environment - The course can be completed from the comfort of your own home, with an instant awarding of your certificate upon completion. No final exam - Anxious test-takers, worry not. The Improv School’s course is content-oriented, making the focus more about taking in information than being able to reiterate the contents of the class. The course is designed to benefit you. If your defensive driving certificate is near its expiration date, now is the perfect time to renew without going out of your way. For folks who have previously completed a Defensive Driving Course, the Improv School also offers a 3 Year Renewal Course in order for you to retain your discount. If an online course does not sound like the right choice for you, there is a classroom-style Defensive Driving Course for your consideration. The classroom-based course offers all of the same benefits as the online equivalent, including the reduction of up to 10% on your insurance rates. Whether you’ve been seeking a way to lower your premiums, or simply desire to improve your driving habits, learning more about defensive driving strategies is a simple and efficient way to start.
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