10 Insurance Products That Are a Waste of Money

Here are insurance products that are rarely worth paying for, and some better ways of preventing or mitigating losses.
Insurance, at its best, helps protect against events that could send your finances into a death spiral. Crucial products include insurance against a serious car crash, the loss of or damage to a home, and the loss of income due to death or disability.

Other products? Many offer little value, or they’re filled with exclusions and caveats. Following are some potentially dumb insurance buys:

1. Identity theft insurance

Federal law limits your liability from credit card fraud, so even if a thief uses your credit card, you’re off the hook if you report theft promptly. Says the Federal Trade Commission:

Your liability for unauthorized use of your credit card is limited to $50. If you report the loss to the credit card company before your credit card is used, you are not responsible for any unauthorized use.

Most card companies go a step further and offer $0 fraud liability.

Report an ATM card missing within two business days after you realize it’s gone, and you are liable for no more than $50 in stolen money. Wait longer to report and you could be responsible for up to $500 in purchases. If you let 60 days go by after your bank sends a statement with unauthorized purchases, you could face unlimited liability, the FTC says. - Read More at the moneytalks

10 Insurance Products That Are a Waste of Money

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