There is insurance available for almost everything. You can get pet insurance to reduce costs at the vet. You can get travel insurance to protect yourself from luggage loss. And of course there’s the insurance that we consider mandatory such as car insurance and health insurance. But if you got every type of insurance that was available, your monthly bills would be sky-high. Here’s a closer look at which insurance is necessary and which you can do without:

• Car insurance. It’s no question, it’s the law.
• Health insurance. Medical expenses are so high that this one really is a necessity.
• Life insurance. This depends on how important your income is to your family. If your family would be financially fine without you, it’s not a necessity.
• Travel insurance. Frequent travelers might find this financially smart but others really don’t need it.
• Rental car insurance. Most people are already covered by personal insurance so this is no necessity.
• Home insurance. Your home is your safety zone so you should protect it.
• Pet insurance. How often does your pet really go to the vet? Most people find this to be a luxury, not a necessity. Putting money in savings towards vet bills usually makes more sense.

Insurance is designed to assist us in paying for our daily needs (like home mortgages) when an emergency arises. Consider this as part of the decision-making process in order to get what you need while avoiding frivolous spending.

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