Back in November 2006, I put together an article on how there are some kinds of insurance that you might not need. Obviously this is your own call, but there are some things worth thinking about.
This article here from the Motley Fool in the UK under the heading of Insurances that Rip You Off! gives a little more detail on this topic. According to this article, there’s another way to look at how useful the particular insurance might be:
My favourite measure of how much insurers are ripping us off (or not, as the case may be) is the claims ratio. This tells you how many pennies get paid out in claims for each pound taken in insurance premiums. If, for every £1 taken in premiums, 60p is paid out in claims, the claims ratio is 60%. The higher the claims ratio, the better value-for-money we’re getting.
Top of the list in value for money was Life Insurance where, in the UK, £1.10 was paid out for every £1 in premiums collected. Bottom of the list was Payment Protection Insurance where 19p was paid out for every £1 of premiums collected – obviously then a fantastic money-spinner for the Insurance companies.
Check out both articles and see if you can save yourself a few quid – but remember, it’s all down to your own needs and requirements.