http://www.insurance-toolbox.com/2008/11/23/types-of-insurance-policies-that-you-shouldnt-buy/ Minimizing Risk, Maximizing Wealth Sun, 25 Jan 2009 13:20:53 -0800 http://wordpress.org/?v=2.8.4 hourly 1 http://www.insurance-toolbox.com/2008/11/23/types-of-insurance-policies-that-you-shouldnt-buy/comment-page-1/#comment-14 admin Mon, 01 Dec 2008 19:50:42 +0000 http://www.insurance-toolbox.com/?p=7#comment-14 It's not a question of whether or not there's one situation that it would make sense to purchase said insurance, it's a matter of on average, does it pay to have said insurance policy. When factoring in the actual number of days in any given year that one rents a car, as well as the unlikeliness of getting in an accident and that you could get most accidents taken care of in a few days to a week, I would imagine that on average it would be less expensive to go without the insurance, rather than pay a monthly fee of any amount to insure a very unlikely situation that would have relatively minimal consequences. Any good financial adviser will recommend that you have 3-6 months worth of income in savings as an emergency fund, and those funds will easily take care of any fee charged by a rental company. It’s not a question of whether or not there’s one situation that it would make sense to purchase said insurance, it’s a matter of on average, does it pay to have said insurance policy. When factoring in the actual number of days in any given year that one rents a car, as well as the unlikeliness of getting in an accident and that you could get most accidents taken care of in a few days to a week, I would imagine that on average it would be less expensive to go without the insurance, rather than pay a monthly fee of any amount to insure a very unlikely situation that would have relatively minimal consequences. Any good financial adviser will recommend that you have 3-6 months worth of income in savings as an emergency fund, and those funds will easily take care of any fee charged by a rental company.

]]> http://www.insurance-toolbox.com/2008/11/23/types-of-insurance-policies-that-you-shouldnt-buy/comment-page-1/#comment-9 R B Mon, 01 Dec 2008 02:57:39 +0000 http://www.insurance-toolbox.com/?p=7#comment-9 so, you say not to take the rental car insurance as it is already part of your auto insurance. Well, consider this scenario for a moment...You rent a car, don't take the insurance. You wreck the car and since there is coverage on your auto policy, you are good, right? Well, the car company you rented from charges you a fee per day that the vehicle is in the shop getting repaired. Who pays for that? Your car insurance does not cover that. Thus, in the long run, you pay more by not having the insurance. so, you say not to take the rental car insurance as it is already part of your auto insurance. Well, consider this scenario for a moment…You rent a car, don’t take the insurance. You wreck the car and since there is coverage on your auto policy, you are good, right? Well, the car company you rented from charges you a fee per day that the vehicle is in the shop getting repaired. Who pays for that? Your car insurance does not cover that. Thus, in the long run, you pay more by not having the insurance.

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