When insurance isn't worth it

Lesson 11 of 13 in our free Insurance guide: a 5-minute money game with the key points below.

This lesson is in the full version.

Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Insurance is free for everyone.

Questions you'll answer

Mo's emergency pot has £600. Which is the best use of 'self-insurance' thinking?

£12 extended warranty on a £25 kettle → Probably skip. Half the price again, for a cheap item. Self-insure.
Car insurance when you drive → Probably worth it. It's the law, and the risk is huge.
Contents cover when you own £2,000+ of stuff → Probably worth it. Losing it all would really hurt.
Insurance on a £20 pair of sunglasses → Probably skip. Just… be careful with them.
Travel insurance for a trip abroad → Probably worth it. Medical bills abroad can be enormous.
Fact: “The Consumer Rights Act covers faulty goods even without a warranty.” — Goods must be of satisfactory quality and last a reasonable time.
Fact: “You can usually cancel most new insurance within a cooling-off period.” — Most general insurance has a 14-day cooling-off period after you buy.
Myth: “Add-on cover at the till is always the cheapest option.” — It's the most convenient, not usually the cheapest. Pressure at the till is a sales tactic.