ALMOST everyone needs insurance at some time.

Many areas of life carry a risk that something might happen which might impose a financial loss and it is some comfort to know that having the forethought to pay a premium to an insurance company will ensure a lump sum will materialise to cover your losses.

Some insurance is compulsory, such as car insurance. Similarly, it makes sense to insure your property against damage or destruction. However, it may be wise to think twice before allowing yourself to be talked into buying policies which may be costly and unnecessary. Be wary of signing up to the following types of insurance before checking if you have cover elsewhere.

Mobile phone insurance - when you buy a mobile phone, most salespeople will try to sell additional insurance, typically costing about £5 per month, to cover the cost of the phone if it is stolen. Check if your home contents policy covers this first.

Extended warranties - typically sold with electrical items. Your new appliance will undoubtedly be sold with a one-year guarantee anyway and research shows the average cost of a repair, should it become necessary, is usually only about a third of the price of an extended warranty. Buying an extended warranty each time you buy a household appliance is an inefficient way of insuring belongings.

Travel cover - automatically offered by many travel agents, but you may already have some protection. All risks household cover will include your belongings when they are outside the home, and many credit cards provide automatic accident and death benefit.

credit card protection - if your card is stolen and you report the loss promptly, most banks will limit your liability to £50. Yet credit card protection is often portrayed as essential.

For further advice on insurance matters the 'small print' or sources of expertise within the insurance sector, please contact City of York Trading Standards by telephoning 01904 551562 or calling at 9 St Leonard's Place. Our e-mail address is trading.standards@york.gov.uk and our fax number is 01904 551511.