1.     Extended warranties? You've just purchased a gorgeous new TV. No question the salesperson will offer you some kind of extra warranty. You'd better protect yourself, you're warned. But should you?

Anthony Giorgianni, Consumer Reports

"You should be thinking: forget about it. Extended warranties are just a waste of money."

Remember: If the product is defective–Mass law requires the store to replace it.  *And warranties are full of restrictions. Instead:

Pay with a credit card that offers product protection.

Create your own warranty: Put the money in YOUR bank account. Collect the interest yourself–and use it if you need it.

Anthony Giorgianni, Consumer Reports

"If you had to insure every single thing you buy, you'll be spending a fortune. It doesn't even make sense."

2.     How about cell phone insurance? Experts say that's usually a waste of your money. You'll be paying monthly premiums–that will soon add up to more than the cost of a new phone.

Mike Gikas, Consumer Reports

"The longer you have that phone, the more you paid into the premiums, you're not going to get your money back."

3.       Credit card loss insurance? Nope. If someone steals your card–you already have that. If you report your card lost or stolen, under federal law the max you'll have to pay is fifty bucks.  

Lizzy Weyant, MassPirg   

So paying an additional premium for a product that you don't really need really isn't worth the money.

4.     Do you need Flood insurance?  That's an easy one. You're only required to buy it if your house is in a federal flood plain–and your mortgage holder will tell you that.   

5.     Life insurance for your kids? Experts say no. You really only need life insurance for the breadwinners in your family..

6.     Extra insurance for your checked suitcases?  You probably have three kinds of protection already: from the airline company, from your homeowners insurance, and even from the credit card you used to buy your ticket. So check out your current coverage before you fly!

7.     Car rental damage insurance? It may seem tempting to pay for this–but your regular car insurance may already cover you! Again, the key here–is knowing your particular policy before you go.

Donna McKenna, Massachusetts Association of Insurance Agents

"The smartest thing for people to do is call their agent and say 'I'm going to rent a car on vacation, what should I do?"

There are some kinds of insurance you definitely DO need. Like insurance for your home and for your car.

To read Tuesday's chat transcript with expert Ed Mierzwinski, click here.

And if you have any other money questions or story ideas you'd like us to look into on Money Monday, you can tell us about it by emailing us at moneymonday@whdh.com.

(Copyright (c) 2010 Sunbeam Television Corp. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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