You never know when a financial emergency may strike. A car accident may require a trip to the mechanic, a storm can damage your home or you may need services from your local doctor.

These three scenarios can get expensive in a hurry and drain your savings. That’s why many people take out insurance to minimize their financial risk, but those same policies can move you further away from long-term goals.

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Some people end up with premiums that consume a large portion of their monthly budgets. While there is a balance between having zero insurance and too much coverage, these are some of the most common signs that trimming your insurance coverage may be a good idea.

The optimal amount of insurance coverage depends on each person, but if premiums are taking up more than 10% of your budget, it’s good to reassess your policies. That’s the major takeaway from Andrew Izyumov, certified financial advisor (CFA), founder and CEO of 8FIGURES.

“If your total premiums take up more than 10% to 15% of your take-home pay, you’re probably over-insured. Think of insurance as a way to protect yourself, not as an investment,” Izyumov said. “The best way to save is to ‘self-insure’ for small expenses. I recommend raising your deductibles to the highest amounts you can easily pay out of your savings. This will lower your premiums much more than keeping a low deductible.”

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Just because you can get insurance doesn’t mean you should. Extended warranties, cellphone insurance and flight insurance are some of the policies that you don’t need.

“Focus your insurance on rare but serious risks that could really hurt your finances, and stop paying for coverage of minor issues. This way, you can keep more of your money invested and working for you,” Izyumov said.

If you have too many insurance policies, you may be paying for the same coverage twice. This overlapping coverage doesn’t do you any good, but you still end up with extra premiums.

“Review your ‘riders’ and add-ons,” Izyumov suggested. “Many people pay for things like ‘towing’ or ‘accidental death’ that are already included in a AAA membership or a basic life policy, so it’s just extra.”

Getting rid of unnecessary policies can quickly free up cash flow that you can then save and reinvest. Insurance can offer some financial coverage during emergencies, but it’s not meant to replace long-term financial goals, like building a large nest egg. Trimming your insurance coverage frees up more capital and can put you in a stronger financial position while insuring yourself for the worst-case scenarios.

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This article originally appeared on GOBankingRates.com: 3 Signs You’re Insurance-Rich and Cash-Poor — How To Save Hundreds Now