Accidental death and dismemberment
Free or low-cost policies offered by employers usually cover accidents involving death or dismemberment, so there’s no need to buy it on your own, says Joan Antoniello, vice president for personal and corporate insurance planning at Weiser Capital Management. And while the average $15-a-month cost is low, the premiums add up ($180 and more a year) —money that could be better spent on adding some other type of insurance, she says. Here are 16 things you should do to prepare for death before it’s too late.
Comprehensive and collision coverage for old cars
Of course, you want to keep your car insured (it’s the law in most states), but beyond the minimum requirements, there’s often no need to get comprehensive and collision coverage for a car with a very low Kelley Blue Book value, says Joel Ohman, a certified financial planner and the founder of carinsurancecomparison.com. Collision covers the cost of replacement and repairs after a typical car accident, while comprehensive takes care of events like fire, theft, vandalism, and falling objects. The latter coverage is often required by lenders, but once the car is paid off and the car’s value has dropped, many people forget to stop paying for it, Ohman says. A good rule, he adds, is that if collision and comprehensive coverage cost more than 10 percent of the car’s value, turn down both types of coverage. Don’t miss these other 7 ways you’re wasting money on your car.
If you already have car insurance, don’t buy it at the car-rental counter, says CPA Steve Elliott. Your existing policy should cover you if something goes awry. There are times when car-rental insurance may make sense, however. Ray Martin of CBS MoneyWatch points out that while your existing car insurance or credit cards may already cover a rental car, it’s a good idea to opt for the insurance if you’re driving outside the country or have high deductibles for personal effects stolen from the rental car. Also, avoid renting one of these 10 car models most likely to get stolen.