Many people today are feeling the pinch of the poor economy and are wondering if they shouldn’t just drop their car and other insurance policies. This is especially tempting for those who haven’t made an insurance claim in years, if ever, who may see some policies as just an unnecessary expense. And when you add up your different policies, you see just how expensive it can be. But remember that your insurance isn’t something that should be seen as a luxury but a necessity; the small price you pay every month is nothing compared to what may happen if you have an accident, house fire, and so on. In addition, your insurance is often required by law for an automobile and is written into your mortgage loan to protect the bank’s collateral.

A better idea rather than just considering the option of canceling your insurance is to think of ways that you can reduce it overall. For example, contact your carrier to see about raising your deductible, or ask if you get a discount for multiple policies such as homeowner’s, automobile, life, and so on. You may also be eligible for a discount because of your age, if you have anti-theft devices on your car or an alarm for your home, or if you have gone so many years without a claim. Sometimes your agent won’t offer these discounts outright so you need to be proactive about asking. And of course the best way to save on insurance is to drive safely and lock your car doors when it’s parked, avoid fire hazards in your home such as smoking in bed or overloading electrical outlets, and anything else that can keep you safe in the car and at home.