Insurance policies are lifesavers when things go downhill. However, not all policies are relevant or beneficial. Some of these coverages are useless and will swallow your savings without any meaningful benefits to you. Here's a look at some of the options you may want to avoid or drop if you already have them.

Private Mortgage Insurance

Buying this makes you look like you're buying an umbrella for a sunny day. It's often bought to protect a homebuyer from lenders. This will not cover anything extra for you, only the lender’s risk if you default. People are convinced by lenders to buy, thinking it benefits them directly.

Extended Warranties

Have you thought of extended warranties when you purchase an electronic device or appliance? Don't think of it because it will not deliver on the promise. The product will likely not break down before the warranty runs out. The existing manufacturer warranty is adequate to protect you from your fears.

Identity Theft Insurance

You're never liable for any crime committed under your identity, provided you can prove it was not you. That makes this insurance one of the most useless protections you'll purchase. Further, many banks and credit cards already offer free monitoring and recovery services. Thus, you are unlikely to need this.

Credit Life Insurance

While it's a good thing to pay debt, failure to pay because you died cannot be your mistake. Just opt for regular life insurance because it will cover all these debts you're worried about. It's a product that will take money away from you with no meaningful ROI.

Car Rental Damage Insurance

This is another pointless expense that drains your pockets with no return. You take it out of fear of unexpected events and repair costs for your rental car. However, most credit cards and personal car insurance policies already cover rental damage. You'll just be duplicating an already existing cover.

Flight Insurance

This might sound enticing to you as a frequent traveler, but it’s usually unnecessary. Your life insurance and other relevant airline insurance cover you for any eventuality. This is a needless overlap that only eats away at your funds. It's redundant cover and a waste of money.

Life Insurance for Children

Taking a life insurance policy on your children makes you a more suspicious parent than it makes you a caring one. While your intention is to secure your children's future, it makes no sense. Instead, choosing other investment vehicles guarantees you greater returns for your kids.

Credit Card Insurance

Why not just manage your credit card expenses instead of buying insurance for them? It's often bought to cover expenses when you are unable to pay for them. Besides, existing credit card protections and consumer laws already cover this. Additionally, the coverage is limited and expensive. Avoid it at all costs!

Credit Card Loss Insurance

You buy this to protect you against the loss of your credit card. However, it's a largely redundant policy. This is because your credit card company already has coverage for fraudulent transactions if you promptly report them. Buying it adds unnecessary costs that give you no additional benefits.

Automobile Collision Insurance

This often looks essential, but it's just overkill. You use this cover to pay for post-accident repair costs. This makes no sense, especially if you have an old car with a low market value. The premiums for this cover are likely to exceed the value of your car.

Cell Phone Coverage

Smartphones can sometimes be costly to repair, making it sensible to buy cell phone coverage. Despite the smart move, the costly premiums and deductibles will likely surpass the value of your gadget. The manufacturer's warranty should be adequate to cover the repairs in the unlikely event that your phone spoils.

Mortgage Life Insurance

You may think this is vital, but it's actually unnecessary. It's often bought to pay off the mortgage in case you die before completion. This is duplication because the regular life insurance policy adequately covers this eventuality. It's limited and expensive, making it a redundant option.

Pet Insurance

Pet insurance often proves to be a waste of money. Most policies have high premiums, numerous exclusions, and caps on payouts. Routine care isn't typically covered. You'll end up paying most of the costs out of your pocket. Open a savings account for your pet for better value.