While, on the one hand, insurance policies offer peace of mind, on the other hand, you hope you’ll never have to rely on them in the future. Whether you’re insuring your life, a house, car or a newly bought appliance, you’ll want to avoid all the potential insurance frauds and misleads that will cost you a fortune in the long run. From overpaying the extended warranty to guaranteed asset protection, there are many insurance traps that you need to be aware of.