On his podcast, Clark Howard answers real reader questions on money, credit, debt, retirement, travel, and more, along with co-host Christa DiBiase.

Clark's answer: Don't buy any of these things that are being touting by your local government or your utility company. They're just making money on commissions by making you feel like they're there for you. All they're doing is shilling for a third-party firm that pays them a commission for everyone who signs up.

When you think about how the money adds up, every time you sign up for one of these protection plans for your home, you end up at a point where even at $20 a month, that's $240 a year. That money should go into your rainy day account instead – the account you use to fix things when something goes wrong with your house or your car. You're much better off being your own insurance company than paying any of these fees.

The worst part about these plans, though, is the fine print. When you think you're covered and you actually have a problem, you try to make a claim only for them to say, "Oh, that's not covered."