“Free insurance!” That’s a come-on that might easily turn your head. But some of us have gotten skeptical about “free” offers, because you might have to buy an accompanying product you don’t need, just to get a free item that isn’t really worth having. We’ve all been there.
“It reminds me of back in the 1960s and ’70s, when you used to get a free water glass in a box of detergent,” says Norma Garcia, senior attorney for Consumers Union, the policy division of Consumer Reports. “If you’re getting crummy soap, then what’s the point?”
However, free insurance coverage may be attached to a product or service you do want, such as a checking account. And, though free, the policy itself may have some value.
“In many cases, the first thing you want to look at is what’s excluded from the policy, and then what’s included,” Garcia says. “Do I really need this, and is this other product worth having without the insurance?”
Free insurance policies rarely provide the full protection you need; often the object is to get you to buy more coverage, to supplement the freebie. So, what kind of free insurance is out there, anyway?