Insurance is often a tough one to navigate, especially for those who are not familiar with the terms and conditions. Many consumers go through life paying for a number of unnecessary items they will never need but are afraid they are short on through coverage. This guide navigates through some of the tougher terms to determine which item is good to have in specific circumstances.

Gap Coverage

This type of insurance is only necessary for those who owe more on their car than the actual value of the car. Gap cover takes care of that shortfall between the finance and the value. This item is essential for those who don't have the cash to settle the difference. Those who don't have any finance on their car will only pay an unnecessary premium by taking out this cover.

Accident Forgiveness

Drivers who are paranoid about increased premiums after an accident will want the peace of mind this cover brings. The unfortunate truth about this type of cover is that consumers need to pay extra for this feature. On a dollar-to-dollar ratio, the extra cost of this feature may not even make a dent in the premium.

Towing and Roadside Assist

Consumers who are concerned about their claims history may want to skip this benefit, as it does count as a claim every time it's used. Rather spend some money on services offered outside the contract, such as with the AAA to prevent this from counting against the claims history.

Personal Injury Protection

This type of extra cover may be required in some states, but in those who don't, it's up to the driver whether he or she would want to go for it. The general rule of thumb is that the driver only forgoes this option when the personal medical insurance already has this covered. If not, it could end up quite costly not to sign up for it.

Customized Equipment

Owners of a stock standard base model vehicle will not have to fork out extra money to cover these items. The cover is specifically designed for raised spoilers, fancy rims, and other similar additions to a car. Customers are only recommended to take this out when they've added all these extras to their vehicle.

Pet Insurance

This may seem necessary to owners of those furry friends. However, if something happens to them at home, they may not be covered. A separate type of pet insurance might be a better option, which covers all situations, not just those that are car-related. Where this might come in handy is with pets who spend ample time in the car.

New Car Replacement

Luxury cars are the ideal target for this type of insurance, especially the higher end ones. This add-on is only available to the original owner, though. Although many of these items may not cost much individually, they all add up in the end. A quick way to determine whether the expense is worth it is by comparing the spend to the actual risk. Also, customers are recommended to consider their actual financial position before they decide to cancel any part of their policy. Image via Pixabay