Being conned into insurance you don't need?

May 17, 2007

Despite the many warnings which consumers have received, it still seems that many are constantly being conned into really expensive insurance offers.

Many insurance companies prey on the fact that consumers know very little about the options available to them. So when they are offered a so called ‘good deal’ they automatically think that it is worthwhile and a great idea to apply for it. However many times this is simply not the case and if anything the ‘good deal’ that you are offered could actually be the average price of ordinary insurance.

It is the insurance of loans and credit cards that is the most misunderstood service of all. Many loans and credit cards come automatically with payment protection and that pushes the cost of the loan or credit card through the roof. So if you suspect that you are paying over the odds for your credit card then it might be worth having a look to see whether added insurance has been put on to your account.

If added insurance has been placed onto your account and you signed an agreement, then technically there is nothing that you can do about it except be more careful next time. It is much better to read through the terms and conditions before you take out a credit card as that way you will be able to say no to anything that you disagree with. Once you have signed an agreement there really is no going back.

Overall most credit card insurance is a waste of money and you should not have to pay for something that you will usually not use. So check out the terms and conditions before you apply for your next credit card and see whether you are going to be conned into paying for insurance that you did not want.