How to Avoid Skimping and Overspending on Your Policy

By Suze Orman

I'm not going to pretend the subject of insurance is sexy or exciting. But it sure is an important and, yes, potentially dangerous topic that deserves your full attention.

I say dangerous because if you screw up and don't have the right coverage-be it auto, home, or life insurance-you are risking financial disaster. All it takes is one mishap or setback that isn't covered by an insurance policy and you, or your loved ones, could easily end up bankrupt. (And starting this fall bankruptcy will be more painful than ever thanks to a new federal law that will increase the hoops consumers must jump through before they can file for personal bankruptcy protection.)

That's why it's well worth your time to make sure you have the right insurance coverage. Let's run through the various types of insurance you need-and don't need-as well as the key coverages you want to make sure are included in each policy. When we're done, if you need to buy any new policies, you can check out the online resources at Yahoo's Insurance Center. And be sure to look over my Print, Clip, and Save Checklist for Insurance Buyers for some smart shopping tips.

This one doesn't need to be nearly as complicated, expensive, or daunting as you probably think.

Look, I know we've gotten ourselves into a horrible national crisis here, and a great many Americans are going without health insurance coverage because of the cost or are being forced to cough up more of their own money to pay for coverage previously offered as an employee benefit.

In my opinion, minimum coverage is not good enough when it comes to car insurance.

If you haven't upgraded your home insurance policy in the past few years you could be dangerously underinsured. That's because you need to be certain that your policy is keeping up with the rising cost of replacing your home.

Once you reach your 50s you should consider adding a long-term care policy to your insurance coverage. This will provide you with a payout to cover nursing home costs as well as a variety of in-home health care expenses.

	Suze's Print, Clip, and Save Checklist for Insurance Buyers To keep yourself on track to healthier personal finances, start here by printing out this checklist of important to-dos. Start Now!

Suze Orman has been called “a force in the world of personal finance” and a “one-woman financial advice powerhouse” by USA Today. She is the author of four consecutive New York Times bestsellers, including The Road to Wealth. Suze Orman, a Certified Financial Planner Professional®, directed the Suze Orman Financial Group from 1987-1997, served as Vice President of Investments for Prudential Bache Securities from 1983-87, and from 1980-83, was an Account Executive at Merrill Lynch.

Watch Suze every Saturday night on CNBC. Check www.suzeorman.com for TV listings. More great advice on Suze's blog.