Credit Insurance

Credit card companies constantly push credit protection insurance, where for between $.10-.50 per $100 charged, the credit card company will pay your existing bill at the time a covered event occurs (e.g., loss of job, medical emergency, etc…). You have to read the fine print to find out that the credit card company will make only the minimum payment.  Making only the minimum payment will not save your credit record.  Further, if you consider what you get under these credit insurance plans, your maximum benefit does not exceed your likely premiums. In many cases, you would be better off just putting aside the $.10-.50 per $100 charged in a separate bank account.  

 

Rental Car Insurance

Rental car agencies frequently try to sell you insurance to cover the rental car. They often fail to disclose that you may be covered under your regular automobile insurance policy.  Even if you checked your policy before leaving home, the car rental agency is unwilling to rent you the vehicle unless you have proof of coverage for their vehicle, information not typically present on the insurance card.  Despite the potential for being ripped off by the car rental agency, it may be in your interest to just buy their insurance, including the comprehensive coverage. When you leave the rental agency, they do a superficial check of the vehicle for damage.  When you return the vehicle, they are often going to find damage to the vehicle if you did not elect to buy their insurance.