Fear of the future sells insurance. Because we can't predict the future, we want to be ready to cover our financial needs if, or when, something bad happens. Insuranꦅce companies understand this fear and offer a variety of insurance policies designed to protect us from a host of calamities that range from disability to disease to everything in between.

While none of us wants anything bad to happen, many of the potential catastrophes that happen in our lives are not worth insuring against. In this article, we'll take you through 15 policies that you're probably better off without. 

1. Private Mortgage Insurance

The infamous 澳洲幸运5官方开奖结果体彩网:private mortgage insurance (PMI) is well-known to homeowners b🍬ecause it increases the cost of their monthly mortgage payments. PMI protects the lender against loss when lending to a higher-risk 😼borrower. The borrower pays for this insurance but derives no benefit.

PMI is required if you purchase a home with a down payment of less than 20% of the home's value. The small down payment is viewed as putting you at risk of defaulting on the loan. Put down at least 20% and there's no PMI. Alternatively, you can put down 10% and take out two loans, one for 80% of the sale price of the property and one for 10%, although interests rates can prevent the economics of this maneuver from benefiting the homeowner.

(For related reading, see: 6 Reasons to Avoid Private Mortgage Insurance.)

2. Extended Warranties

澳洲幸运5官方开奖结果体彩网:Extended warranties are available on a host of appliances and electronics. From a consumer's perspective, they are rarely used, particularly on small items such as DVD players and radios. If you purchase a reputable, brand-name product, you can be fairly certain it will work as advertised and that the extended warranty is statistically likely to be unnecessary.

If you spend $5,000 on a giant, 🍬flat-screen television, the policy is still unlikely to pay off, but might make you feel 🥃better. For everything else, forget it. 

3. Automobile Collision Insurance

Collision insurance is designed to cover the cost of repairs to your vehicle if you are involved in an accident. If you have a loan out on the car, the loan issuer is likely to require that you have 澳洲幸运5官方开奖结果体彩网:collision insurance, but if your car is paid off, collis🎀ion i🐻s optional.

4. Rental Car Insurance

Most auto insurance policies offer additional coverage for the cost of car rentals, touting it as useful if your car is involved in an accident. This may sound good, but most people rarely rent a car, 🎀and when they do, the ꦍcost is relatively low and hardly worth insuring against.

Although rental car insu🌠rance is relatively i🏅nexpensive, amortized over the course of a lifetime you are still likely to spend more than you will benefit.

(For related reading, see: 8 Things You Need to Know Before Renting a Car.)

5. Car Rental Damage Insurance

Many auto insurance policies already cover rentals, so there's no need to pay for this twice. Check your policy before you pay. Depending on where you rent the vehicle, you may also be able to pay a small fee for insurance on your rental when you pick it up at the rental center. If this fee is less than what you'd pay for a year in your old policy, choose the fee over the policy. 

6. Flight Insurance

Flight insurance coverage is completely unnecessary. Despite portrayals in the media, airline accidents are relatively rare, and your 澳洲幸运5官方开奖结果体彩网:life insurance policy should 🍨already provide coverage in the event of a catastrophe. 

7. Water Line Coverage

Water companies have made an aggressive push to sell policies that cover the repair of th🤪e water line that runs from the street to your house. The odds are in your favor that you will never use this coverage, particularly if you live in a newer home.

If you live in an average suburban neighborhood and you need to repair the water line, the distance to the street is short, the likelihood of a problem is low and repair costs are a few thousand dollars or less. The same goes for policies offered by otꦯher utility comp🥂anies.

(For related reading, see: Does homeowner's insurance cover broken pipes?)

8. Life Insurance for Children

Life insurance is designed to provide a safety net for your heirs/dependents. Because children don't have heirs and, statistically speaking, are likely to grow up safe and healthy, most parents should not purchase 澳洲幸运5官方开奖结果体彩网:life insurance for their kids. Instead, use the money that you would have spent on life insurance to fund an education plan or an 澳洲幸运5官方开奖结果体彩网:individual retirement account (IRA). 

9. Flood Insurance

Unless you live in a flood plain or an area with a history of water problems, don't bother buying 澳洲幸运5官方开奖结果体彩网:flood insurance🍬. If no home in your 💮area has ever been flooded from natural causes, yours is unlikely to be the first.

10. Credit Card Insurance

Purchasing coverage to pay your credit card bill in the event you cannot pay it is a waste of money. A far better idea is to avoid running up your credit cards in the first place, so you won't need to worry about the bills. Not only do you save on the insurance premiumsꦕ, but you'll also save t༺he interest on your debt. 

11. Credit Card Loss Insurance

Federal law limits your liability if your credit card is stolen. Your out-of-pocket costs are limited to $50 per card and not a penny more. In fact, many credit card companies don't even try to collect the $50.

(For related reading, see: Does a Lost or Stolen Credit Card Hurt Your Credit Score?)

12. Mortgage Life Insurance

Mortgage life insurance pays off your house in the event of your death. Rather than add another policy and another bill to your list of insurance plans, it makes more sense to get a 澳洲幸运5官方开奖结果体彩网:term-life policy instead. A good life insura꧅nce 𒆙policy will provide enough money to pay off the mortgage and cover other expenses as well. After all, the mortgage isn't the only bill your survivors will need to pay. 

13. Unemployment Insurance

This coverage makes minimum payments on your bills if you are out of work, which sounds like an attractive proposition. A better plan is to save your money and build up an 澳洲幸运5官方开奖结果体彩网:emergency fund instead. You won't have to cover the cost♌ of the insurance policy and, if you are never out of work, you won☂'t spend any money at all. 

14. Disease Insurance

Policies are available to cover cancer, heart disease, and other maladies. Instead of trying to identify every possible disease 💜you may encounter, get a good medical coverage policy instead. This way, your medical bills will be covered regardless of the problem you face.

(For related reading, see: 澳洲幸运5官方开奖结果体彩网:What Is Critical Illness Insurance?)

15. Accidental Death Insurance

Unless you are extraordinarily accident prone, an accident is unlikely. Major catastrophes such as car wrecks and fires are covered under other policies, as is any harm that comes to you while at work. 澳洲幸运5官方开奖结果体彩网:Accidental death policies are often fraught with stipulations that m🍸ake them difficult to collect on, so s💫kip the hassle and get life insurance instead.

While a certain amount of insurance coverage is necessary, you need to choose carefully. In general, broad policies that offer coverage for a multitude of potential events are a better choice than limited-scope policies that focus on specific diseases or potential incidents. Before you buy any policy, read it carefully to make sure you understand the terms, coverage, and costs. Don't sign until you are comfortable with the coverage and are sure you need it.

(For related reading, see: 5 Insurance Policies Everyone Should Have.)