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Americans spend more than $1.1 trillion a year on various kinds of insurance premiums, according to the Insurance Information Institute.

Millions of Americans spend money on insurance premiums every year only to find out the insurance won't cover certain needs, according to MarketWatch.

Americans spend more than $1.1 trillion a year on various kinds of insurance premiums, according to the Insurance Information Institute. But not all forms of insurance are needed.

To get the best insurance, people should always read the fine print and ask many detailed questions. They need to know what is and isn't covered, according to the article. Also, they should only purchase insurance from licensed companies and agents. Their status can be found through the state insurance commissioner's office.

Consumers should say away from pet insurance as it rarely covers needed costs and comes with a plethora of restrictions, according to MarketWatch.

Insurance for cell phones should be avoided as well, the article says. The monthly cost adds up and people can just reactivate their old phones if needed. Insurance on a smartphone often comes with a high deductible and the replacement phone is usually refurbished, not new.

Medical coverage is usually a good thing to have, according to the article. If consumers can't afford full coverage, they can often pay for catastrophic insurance. Not having any health insurance in the event of a catastrophe is one of the main reasons people file for bankruptcy.

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