Insurance Policies That Experts Say Are Not Worth Purchasing

Some insurance policies that consumer advocates say you might want to avoid:

* Flight insurance. Dependents need protection from the economic consequences of your death from any cause, not just an air crash. That comprehensive coverage comes from a basic life insurance policy. Besides, says J. Robert Hunter, president of the National Insurance Consumer Organization, “you’re more likely to slip and fall in the bathtub than die in a plane crash.”

* Life insurance on children. While the loss of a child is emotionally catastrophic, that is not the case economically since there are no dependents involved. “If your child is a movie star like Macaulay Culkin, that’s a different story,” Hunter says.

* Life insurance if you are single or childless. There is no economic reason to buy life insurance if you have no dependents, or if a working spouse can get by without your income.

* Car rental insurance. At around $10 to $12 a day, or $4,000 a year, it is too expensive and probably unnecessary since many credit card companies provide similar coverage anyway. Your own auto insurance also may extend coverage to rental cars.

* Collision insurance on old cars. It is probably not worth maintaining collision coverage on a car more than 5 years old or if the collision portion of the auto premium exceeds 10% of a car’s market value. “You need to make certain as your car depreciates in value that your comprehensive and collision coverage are adjusted downward,” notes Stephen Brobeck, executive director of the Consumer Federation of America.

* Mortgage and credit insurance. They protect dependents if you die and still have payments due on a house, car or other major purchase. Experts say a good annual renewable term life policy is not only cheaper but also protects against all economic consequences of your death, not just outstanding mortgage payments.

* Hospital indemnity insurance. Many of these plans promise an extra $100 a day while you are hospitalized. If you have good health insurance, you will not need this.

* Cancer and mugging insurance. Neither plan is comprehensive. Good life or health policies will cover the consequences of both, experts say.

* Contact lens insurance. Losing a contact lens hardly meets the test for catastrophe. Anyway, the cost of the premium is about equal to the cost of a lens at a discount eye-wear store, Hunter says.

* Rain insurance. The policy pays if it rains a specific amount during a vacation. While a wet vacation may be emotionally draining, it is also not a catastrophic event.

* Pet insurance. Health care costs for a sick dog or cat are significantly low compared to humans, and, therefore, considered non-catastrophic.