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It usually takes a while for even the savviest consumers to grasp the fact that there are many fees and other  charges that they should never ever have to pay for. You can go for your entire life without incurring most of the expenses on this list without any material effect on your standard of living. It all comes down to just saying no on an application or brushing away a sales pitch for the things you know you’ll never need.
1. Extended Warranties
Warranties are the consumer version of insurance in Blackjack. It’s a sucker’s bet. It’s especially true when it comes to electronics where the value of the item you are buying drops precipitously with time. Do yourself a favor, research the quality and reliability of the product you are buying first and buy without an extended warranty from a retailer with a generous return policy. Whether you’re talking about electronics or a car, if there’s a major defect or something malfunctioning - you’ll usually find out about it within a few weeks of purchasing it. If something is likely to go wrong, it’s likely to happen within the normal return period. This rule applies to all warranties: home, electronic, auto, etc. Sure, you might buy a lemon but with all the money that you would spend on warranties on all your products, you’ll be able to cover the replacement cost easily.
2. Car Rental Insurance
If you have regular car insurance, you’ll never need to pay for this optional charge which in some cases can end up doubling your car rental expenses. Carry your insurance card with you when you travel and just say no when they ask you if you want insurance. Many states have cracked down on rental car companies for forcing people to get coverage, tell them you know the law and be prepared to show them your insurance card.
3. Collision Insurance on an Old Car
One of the great benefits of hanging onto an old car is that you can eventually drop the collision insurance. Another reason to own your car outright as you can’t drop collision until your lien is released. Over the long term, if you’re a safe driver take the chance and consider yourself self-insured. Unless an accident is absolutely your fault, chances are the other guy’s insurance company will pay for it. This is especially true in no-fault states. Work out the math, once you figure how little the auto insurance company will pay you and subtract your deductible, you'll net very little even if you total your vehicle.
4. Private Mortgage Insurance
Buy real estate with 20% down and you’ll never pay PMI. Even if you can only come up with 10% down, you can usually piggy-back a second 10% loan that will be far cheaper over time than carrying PMI.
5. Baggage Fees
Before you book a ticket, make sure you know what their policy is on check-in baggage. Baggage fees have gotten ridiculous with roundtrip baggage fees often approaching ticket prices. Do yourself a favor, fly Southwest and avoid them altogether or choose an airline with lower baggage fees like Virgin. Of course, you can always skip checking in bags and travel light. Pitch the heavy stuff and go easy on the outfits. Chances are you won’t need as many clothes as you bring and with the rates where they are, you could buy an outfit on your trip and mail it back home. If you do need to check a bag on one of the major airlines, do it online and save time and a few bucks and pack it all the way up to the 50 pound limit before you check a second bag.
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