Seven Insurance Products You Probably Do Not Need
Insurance is worth buying when a loss would be unaffordable. Most of these cover losses you could absorb.
At a glance
Figures checked 1 Sep 2026
Best for
Reviewing your existing policies for overlap
Usually skip if
Anyone still under-insured on liability, disability or health
What to take away
- Insure catastrophes, not inconveniences.
- Point-of-sale insurance is priced for the seller's commission, not your risk.
- Before adding cover, check what your existing policies and credit cards already provide.
- Extended warranties on electronics. Manufacturer warranties and card benefits usually overlap, and the failure cost is affordable.
- Credit life and credit disability on a loan. Expensive per dollar of coverage; a term policy does the same job cheaper.
- Accidental death and dismemberment. Your family’s need does not depend on how you died.
- Rental car damage waivers, when your own auto policy and credit card already extend coverage.
- Flight insurance sold at the gate. Narrow coverage, high margin.
- Mortgage protection insurance sold by mail. A level term policy with you choosing the beneficiary is more flexible and usually cheaper.
- Identity theft insurance bundled at a premium. Free credit freezes at the three bureaus do more.
Money saved here is best redirected to the coverage people genuinely under-buy: liability limits, umbrella coverage and long-term disability.
Common questions
No. A home warranty is a service contract covering appliance and system breakdowns, with its own exclusions and service fees. It does not replace an insurance policy.