The allure of saving big bucks by dropping your insurance premiums sounds enticing, right? But please, please, please hear me out before you do this — and here’s why.

In today’s episode of Your Money Minute with Tracy Stewart, CPA, I want to talk about why it’s a bad idea to drop insurance coverage to save money. Yes, it may seem like you’re saving hundreds of dollars by ditching your healthcare coverage or homeowner’s insurance… But what happens when calamity comes aknockin’? (And you know it will!)

It costs far more money to pay for disaster situations (that tend to happen when you want to avoid them the most.) Have a major medical situation? You’re going to get a massive hospital bill – that dwarfs those pesky monthly premiums. What happens if your home catches on fire? That’s enough to derail you for a long, long, long time…

Here’s my advice: See if you can get discounts on bundling your coverage. Many insurance providers will offer savings when you purchase more products with them. You may also qualify for loyalty discounts if you’ve been with a provider for long enough. You may also want to take a look at how much coverage you have now, and if it can be adjusted to save you some money.

Financial independence is unbelievably liberating. Making sound financial decisions will help you avoid costly mistakes — letting you stow away more money and prepare for your long-term financial needs.

You can always subscribe to my YouTube channel for even more practical tips on making the most of your money and life in new episodes of Your Money Minute each and every weekday!