The six things you should never splash out on insurance for – it’s absolutely pointless

IT’S more important than ever to check you are not forking out for useless insurance. Some policies – for buildings, their contents and cars – are musts. But others are poor value . . . or even worthless.

Harriet Meyer reveals where you might find you are already covered or the policy may not pay out when most needed.

Boiler cover — potential waste: £297 a year

GETTING your boiler fixed can be expensive, costing an average £196, according to consumer association Which?.

An annual service costs £86 on average – but buying boiler cover isn’t usually worth the cost.

You’ll pay £297 a year on average, and only around three in 100 policyholders recoup that, Which? research found.

British Gas’s popular HomeCare plans, for example, range from about £204 to £312 a year and include an annual service.

Also, if your boiler breaks, some policies won’t pay out if it’s older than six years, or only up to a maximum of £500.

Extended warranty — potential waste: Up to 50% of cost

EXTENDED warranties on electrical goods are a huge money-spinner for retailers but it’s likely that you’ll pay over the odds for them.

For example, a three-year Care and Repair plan from Currys costs about £100 for a £249 washing machine, and a two-year breakdown and accidental damage care plan from Argos costs £109.99 for a £349 TV.

But many items already come with a one- or two-year warranty as standard, and most extended warranties last only three to five years, during which time it’s unlikely most new appliances will break down, says James Daley, of campaign group Fairer Finance.

Gadget insurance — potential waste: £100 a year

THE latest smartphones and tablets can cost thousands, so insuring them makes sense.

You’ll pay about £50 to £100 a year to cover theft and accidental damage, but policies are often riddled with exclusions that make it difficult to claim successfully.

Even if the policy covers loss, you may find a claim rejected if you’re “negligent”, such as leaving your gadget on a train seat while you go to the toilet.

But you can add your gadgets to your home insurance instead to cover theft or loss away from home.

Comparethemarket’s Alex Hasty says: “This extra cover is likely to be far cheaper than a separate gadget policy.”

Personal accident — potential waste: £30 a year

THE thought of a serious accident that leaves you unable to work can be terrifying.

So personal accident cover that pays out a lump sum of up to £100,000 can be tempting.

Car insurers often try to flog personal accident cover as an add-on for around £30 a year.

But if you have a comprehensive car insurance policy it will often already include £5,000 worth of personal accident cover.

Plus, you may also already be covered for loss of earnings by a workplace income protection policy.

“That will cover you in the event you’re involved in an accident, as well as if you become ill,” says Daley.

Handbag cover — potential waste: £20 a year

YOU can buy specialist handbag insurance, or sometimes you can add this cover to your car insurance for £10 or £20 a year.

But even if you have a designer bag, it will often be covered under your home insurer’s personal possessions cover.

Alternatively, you can add it as a specified item.

You can also add valuable contents you carry around regularly, such as glasses or your smartphone, so you can claim if they are lost or stolen in this country.

Key cover — potential waste: £20 a year

LOSING your car keys can be stressful and expensive. So key cover is designed to protect you from having to fork out for a new set.

Some car insurers sell this as a policy add-on for about £20 a year.

But many policies will already include up to £500 of cover if your car keys are stolen, and it’s unlikely you’ll claim anyway.

Only around one in 100 policyholders claim on key cover each year, according to personal finance analysts Nimblefins.

Some policies will only pay out if keys are stolen, not if you simply lose them.

Some breakdown and home insurance policies also include cover for car keys, so beware of doubling up.