1Flood Insurance

Many insurance policies will automatically be offered, in select states, without flood insurance added onto the policy. Insurance agents can use the fear of a household flood to urge you to add on flood coverage so that you, your home, and your possessions will be completely safe in the event of a flood. However, unless your home is located in an area that is prone to flooding, you simply do not need this type of insurance policy.

If you have any questions about any past floods in your area, you should reach out to your local city offices as they will be able to provide you with all of the details that you need. Keep in mind that if your home was in a flood zone, it would have had to be disclosed in the paperwork when you purchased your home. In most cases, flood insurance is among the insurance policies you don't need.

2Mortgage Insurance

When you are approved for a mortgage there are good odds that you will be inundated with advertisements offering you an insurance policy that will pay off your mortgage in the unfortunate event of your death – or your spouse’s death. While this may seem like a great way to ensure that your spouse still has a home, the reality is that you should instead opt for a term life insurance policy that will do more than just pay off your home. It will pay off your home and other expenses that will rapidly add up.

3Private Mortgage Insurance (PMI)

The majority of homeowners are well familiar with the private mortgage insurance policy that is required by mortgage lenders when an applicant that is also a high credit risk puts less than 20% down on their mortgage. This insurance policy will protect the lender in the event that the mortgage borrower defaults on the loan; however, the major downside to this for the mortgage borrower is that it increases their monthly mortgage payment.

To avoid this additional fee you could consider holding off on signing for your mortgage and try to save the 20% - with a 20% down payment the PMI will not be required.

4Children's Life Insurance

There are several very well-known life insurance policies that parents can get for their children. These policies will provide for you, or your grandchildren in the event of your child’s passing away. Consider saving the money that would have otherwise been spent on this policy and putting it into a high-interest college savings account – that is a much better investment into your child’s (and your grandchildren’s) future.

5Rental Car Insurance

In the event of an accident with your own vehicle, you may have the need to rent a vehicle; however, it can prove to be an unnecessary expense because should you actually have the need to rent a car, the costs are relatively low.

Additionally, if you are involved in an accident, that is not your fault – the other driver’s insurance policy should cover the costs of your rental car for you. Rather save the money and put it into your savings account.

Rental car insurance is an insurance policy you don't need.

6Rental Car Damage

This is another insurance policy you don't need. When you rent a car you will be asked to provide proof of your own insurance. Then you will be offered a damage policy on the rental car in the event that you get into an accident. The majority of automobile insurance policies offer coverage for rental cars so you should verify the type of coverage that you already have before you wind up paying twice for the same type of insurance coverage.

7Travel Insurance

When you book travel through a travel website you will be offered the opportunity to sign up for two types of travel insurance that you truly don’t need. The first will offer you insurance that will provide you with a full refund of the costs of your travel if you need to cancel your trip for any reason. The second will provide you with an insurance policy to cover you and your belongings when you are out of the country. If your travel plans are set in stone then you are really unlikely to have the need to cancel them; additionally, there are good chances that you have a policy to cover you while you are traveling.

Be sure to also check the policies offered by your employer if you are traveling on business – they are sure to have a policy that covers you and your belongings.

9Credit Card Insurance

There are several types of insurance policies that will pay off your credit card bill in the event that you are unable to do so yourself; if you lose your job or are otherwise unable to work, for example. A better course of action would be to resist the urge to use and run up your credit card balances so that they do not become a problem for you. If you are currently struggling with your credit card debt you may want to consider credit counseling in order to get your financial life back on track.

10Unemployment Insurance

The last of the insurance policies you don't need is unemployment insurance. If you are unable to work, or you have been laid off, unemployment insurance will step in to make the minimum payments on your owed bills. While this might sound like the ideal solution in the event that you lose your source of income, consider that the amount spent on the policy could be better served by helping you to increase your savings account balance. Additionally, many people who have been laid off from work are able to claim unemployment benefits which will also help to keep you afloat until you are able to land another position.

If you have several insurance policies you don't need, consider doing a run through of them in order to determine the amount of money that you could be saving over the life of the policy. Saving that money in a high-interest savings account could just prove to be a much better investment in your future.