Do you need 'add-on' car rental or travel insurance? No, says consumer group

Consumers should be wary of purchasing insurance from sellers of cars, homes, electronics and travel, the Consumer Federation of America (CFA) said in a consumer alert today.

"Add-on" insurance, the CFA warned, tends to be outrageously overpriced, typically involves kickbacks to sellers and is often unnecessary. For example, collision insurance policies sold by car rental agencies are often many times more expensive than regular policies. Your existing auto insurance policy or credit card probably already covers the risk, the group says.

"In our experience, insurance offered to you in conjunction with the sale of other products is often not needed or, if needed, can be purchased much less expensively from other sources," said J. Robert Hunter, CFA's director of Insurance and former Texas Insurance Commissioner and Federal Insurance Administrator, in a statement.