Advice From an Insurance Expert: 10 Types of Coverage You Should Never Buy
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NEWPORT BEACH, Calif. - Californer -- Insurance Coverages You Just Don't Need

1. Gap Coverage From a Car Dealership

While gap coverage is an important coverage to have, if you have a car loan that is more than the value of the car. New cars depreciate significantly as soon as you drive off the lot and even more over time. It's important to determine what your car is worth by checking Kelley Blue Book or Edmunds to see what that value is.

The car dealership will try to sell you gap coverage. Even if you need it, it's a bad idea to buy it from the dealer. Dealerships are notorious for high prices for gap coverage and they lump it into car payments so keep your ears perked and make sure you buy this coverage from an insurance company instead.

Note that gap coverage is only available on newer cars. Buying a car that is more expensive than its average price will mean that if your car is stolen or totaled, you may not get fully paid out for the remaining balance of the loan.

2. Rental Car Insurance

If you have collision coverage on your car, it's totally gratuitous to buy a collision waiver when you rent a car because your personal car insurance coverages will apply to the rented car as well. As inexpensive as the insurance waiver is at the rental car kiosk, you're just paying for something you already have.

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If you do not have collision coverage, the credit card you're using to rent the car may offer insurance coverage. Call your credit card company ahead to be sure.

If you want to be covered for rental cars used while a car is in a repair shop after an accident, you can buy rental car reimbursement coverage.

3. Full Coverage on an Old Car

Full coverage means that you have collision and comprehensive coverage. You'll never get more money from your insurance than what a car is worth, if your car is totaled or stolen, so, when you consider how much you pay in premiums on collision and comprehensive, you may want to consider dropping those coverages. The general rule of thumb is to drop the coverage, if your car is worth less than $4,000. Your liability coverage pays for damages to the other car, if you're responsible for an accident.

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