As I previously mentioned a few types of insurance are a necessity. But there are also policies you can definitely do without.

Mortgage life & disability insurance : all financial institutions will try -hard- to sell you life & disability insurance on your mortgage. Don’t buy these from your lender, as they are not advantageous for you. The premium you pay remains the same for the life of the mortgage, however both your coverage and the mortgage amount decrease. Any monies paid will also be directly to the bank, and more often than not, you can’t collect on the policy.

Credit or payment protection: credit card companies offer this insurance to pay a portion of your balance if you loose your job or become sick. If you have disability insurance or an emergency fund, you definitely don’t need this. Premiums can be hefty.

Accidental Death & Dismemberment (ad&d): again, if you have life and disability insurance, you don’t need this either.

Extended warranties: Check the current warranty first, as well as the manufacturer’s requirements, before shelling additional money. Carefully read the fine prints of the extended warranty. They usually contain many exclusions. If the price exceeds 20% of the item you want to cover, take a pass.

Car rental insurance: if you pay for your rental with credit card, you can decline the insurance offered. If you have an existing car insurance, your coverage may transfer to the rental.

Collision or comprehensive coverage for older cars: if your vehicle is over 10 years old, you don’t need full coverage.

There are definitely more cash-grabs insurances you can skip without blinking. It is crazy what insurers come up with nowadays!