Insurance Add OnsInsurance add-ons; boon or fad?

What are Insurance Add Ons?

• Add-on insurance is the extra protection offered at sale time that promises you'll be reimbursed for the loss or damage of any goods.

• The phrase "add-on insurance" may sound foreign, but if you've ever bought a car or booked airline tickets, then you've most likely dealt with it.

Who Sells Insurance Add Ons• Apart from Insurance brokers, Sellers of products, from cars to

homes to travel packages, are also the ones hawking the add-on insurance plans. In the past, you may have encountered a check-out clerk inquiring if you want insurance for your new TV, or when making a flight reservation, an online form may have asked you if you want additional travel protection.

Should You Buy Insurance Add Ons?• According to many Insurance Companies consumers should be

cautious about buying "Add-On" Insurance.• Add-on insurance can be extraneous and even when the

coverage is needed, the policies can be overpriced.

You May Have Already Covered• For instance, many car insurance policies also insure you for

the same amount on your rental car, or some premium credit cards provide travel protection or loss of physical property. Start by reviewing the terms of your life, health, disability, home and auto insurance plans and seeing specifically what their coverage entails.

Why Add-On Insurance Costs MoreEven if you've identified a gap in coverage, you still may want to seek sources outside the point of sale to obtain additional insurance. The reason is that add-on insurance offered by the seller is usually more expensive.

The seller - whether it's a car sales agent or an online travel site - receives commissions from insurance companies for signing you up for their insurance package. And typically, retailers choose insurers who hand out the biggest kickbacks, upping the seller's price of insurance. That's why add-on insurance tends to be pricier than if you were to seek out insurance coverage on your own.

Choose Insurance Add Ons Carefully

After you decide what coverage you have - or don't have, the next step is finding a provider to cover the holes. To get the best deal, don't forget to research via the internet, call up insurance agents as well as multiple providers and compare prices.

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