One of the worst possible ways to try and save money is by lowering any of your insurance coverage in hopes of getting a lower premium. I'm sure we are all in the mind set of "nothing bad will happen to me" and ignore the "what if." But imagine you lower your homeowners insurance coverage and your Christmas tree catches fire and your home burns down? Now that you are underinsured, you won't get enough out of your claim to rebuild your home or replace your possessions.

The same is true for auto insurance. Lowering your liability coverage levels to the state minimums could leave you financially exposed in the event of a major accident. The one insurance product that seems the worst hit by the recession is health insurance. Whether people are losing their health coverage because they lost their job, or simply forego purchasing coverage in an attempt to save money, but the number of Americans without health insurance continues to climb. In 2007, 45.7 million U.S residents did not have health insurance coverage; that's roughly 15% of the population!

The problem is, people can't stay healthy all the time and accidents happen. But people who don't have health insurance coverage tend to pass on routine examinations and preventive treatments and usually end up in the emergency room far worse off than if they had a check up. And anyone who has ever had to go to the ER knows that ER bills are a lot more expensive than a regular visit to your doctor.

To safely save money on your insurance policies, you can review your policies and compare quotes to make sure you are getting the coverage you need, at the best price. The start of a new year is a good time to review your policies and update your coverage levels.