The economic downturn has undoubtedly left many people looking for ways to cut costs and spend less money.
But scaling back on insurance coverage is not a way to accomplish saving, experts agree.
"In an economic downturn like this, there are ways of reducing your insurance premium," said Fort Dodge State Farm Insurance Agent Dan Flattery. "But one of the things we tell people is don't drop your coverage."
Locally, Flattery said his office has not seen a drastic shift in people canceling insurance coverage.
"We are seeing people reviewing their policies and seeing areas where they can maybe save money, but we're not seeing a lot of reduction in coverage," he said.
For people who have experienced involuntary job layoffs, federal stimulus money is available through the American Recovery and Reinvestment Act to help former employees temporarily stay enrolled in their employment-related health insurance plans.
Andy Hejlik, a co-owner of Kingsgate Health Insurance in Fort Dodge, said people who were laid off any time after Sept. 1, 2008, can apply for the money.
The federal government is subsidizing COBRA premiums so laid-off workers can continue their health insurance coverage for nine months after the law went into effect on March 1 by paying 35 percent of their premiums instead of the entire amount.
Lynn Schreder, another co-owner of Kingsgate Health Insurance, said her advice to consumers is to seek information from an insurance agent.
"Now, more than ever, the agent is so important in the decision-making process," Schreder said. "(Agents) can help them to make the right decision for them and their employers."
Consumers are maintaining coverage and reducing costs by increasing their deductibles on both auto and health insurance, according to the Insurance Research Council.
Increasing the deductible is a trend Hejlik said he has noticed in the past five years.
"These findings confirm that most Americans recognize the importance of maintaining essential insurance coverage on their homes and cars," said Elizabeth Sprinkel, senior vice president of the IRC. "But they also show that Americans are willing to shop and re-evaluate their insurance needs in order to reduce insurance costs."
In additional to health and auto insurance, Flattery said life insurance policies are important to have - especially considering today's economic climate.
"We feel it is important to maintain those policies," he said. "In tough economic times, you want to make sure you take care of those risks so family members aren't faced with a big debt of some type."
Without auto insurance, drivers and passengers run the risk of extensive financial liability, especially if someone is injured in an accident. The fine for driving without insurance in Webster County is $397.50. If there is an accident involved, that amount jumps to $735. Those sums don't include any additional monetary compensation if there is an injury involved in the case, which can easily add up with hospital and repair bills, Flattery said.
The IRC estimates that by 2010 - with the strong correlation between the percent of uninsured motorists and the unemployment - approximately one in six drivers across the U.S. will be uninsured.
The experts agree that, in most cases, it is cheaper to have the insurance.
Contact Angela Burch at (515) 573-2141 or aburch@messengernews.net