There’s a surprising number of ways we all waste money on insurance—sometimes by accident, sometimes by habit, and often because the insurance world changes while we’re not looking. Let’s talk about some familiar policies you’re probably paying into right now. I want you to think about each of these not as a necessary burden, but as a potential source of savings. Many of us believe insurance is a set-it-and-forget-it product, but treating it this way can easily cost thousands over the next decade. How did we get here? Let’s look at the overlooked moves that add up, and then focus on simple ways to course-correct, no matter where you stand today.

I want to start with term life insurance, because this is a policy that quietly drains wallets when left on autopilot. Most people buy a term life plan, file away the paperwork, and assume it’s settled for 20 or 30 years. But the premiums you agreed to a decade ago may be out of line with today’s landscape—especially if you bought your policy when rates were high or your health has improved since. I’ve seen cases where someone keeps paying $100 monthly for a 20-year policy, even though quoting the same coverage now as a healthier, non-smoking adult would cost them $60. That single change is worth $480 a year, which adds up to a staggering $4,800 over the next decade. The insurance company will never nudge you to check: that task falls on you. If you’ve quit smoking, lost weight, or simply haven’t updated in years, a new comparison each renewal season takes 10 minutes and might lead to recertification at a far lower price. “The only thing worse than paying for something you don’t need is paying more for it than you have to.” I like to remind myself of this whenever I renew any policy.

Auto insurance is another classic example of excess spending, particularly as companies have ramped up pricing in response to inflation and increased claims. What many drivers don’t realize is that car insurance is deeply customizable—if you don’t ask for a better deal, you rarely get one. Most people never bother to claim defensive driver discounts. Completing a quick online defensive driving course can chop premiums by 10–15%, but unless you volunteer the certificate, your insurer won’t know to adjust your rate. I encounter clients paying steep premiums simply because they didn’t supply proof that they’re low-risk. Imagine paying hundreds more per year, not for lack of safe driving, but for lack of a little paperwork. Are you missing out on a discount you’ve already earned?

Here’s something I discovered after reviewing dozens of insurance files: every two years, there’s a strong chance the coverage levels you’re paying for are out of sync with your home’s true value. Homeowners insurance shoppers tend to insure for the purchase price, or for last year’s estimate, but home values can fluctuate—sometimes drastically. A dip in your local market means you might be paying to insure a $400,000 house that’s now worth closer to $350,000. It may sound small, but every extra $10,000 of coverage you don’t need means more thrown away on premiums. A simple market assessment every other year can align the coverage to your actual risk. If you upgraded your home, let your policy reflect the improvement’s value; if nearby property values tanked, you’ll save by adjusting your coverage down.

Do you ever wonder why you chose your current health insurance deductible? For many, it’s set too low, making premiums far more expensive than necessary. We select low deductibles because we’re afraid of large invoices, but this fear can backfire: you may pay hundreds or thousands more across the year for peace of mind that rarely translates into real benefit. If you have a healthy emergency fund and rarely use your medical benefits, bumping up your deductible can slash your monthly bill—and often more than covers your share if something happens. Too many people overpay for coverage they never use. How often do you reach your deductible each year?

Credit cards have a knack for creeping into our insurance habits. If you rent cars frequently or shop extended warranties, you might not notice that your card already grants robust protection on these frontiers. Buying rental car insurance at the counter is a common scenario: the average traveler spends $10-$20 extra per day for insurance that their card quietly covers at no extra cost. Luxury cards in particular often offer redundant trip, purchase, and theft coverage. Dig into your benefits statement once a year—you might be surprised at how much duplication is hidden. “Insurance is the only product that both the buyer and the seller hope is never actually used.” Investing time to review these overlaps ensures you’re buying only what matters.

All of this invites a basic question: how much money could you reclaim by treating your policies as active choices rather than fixed expenses? Comparing life insurance premiums takes a few minutes using online quote aggregators—each year that you delay could mean leaving savings behind. When talking to your auto or home insurer, don’t leave discounts on the table. Ask them point-blank: “What savings am I eligible for now that I wasn’t last year?” If you sense hesitation or get a vague answer, that’s your cue to look elsewhere.

Here’s a trick I often use: when it’s time to review a homeowners policy, I call a realtor in my area and ask for a quick market snapshot. Local agents are usually happy to provide a ballpark estimate, especially if you mention it helps you keep insurance spending reasonable. Combine this with an every-other-year review of your policy—most people go a decade or longer without checking, and that’s where the system eats up your budget.

Let’s revisit those health insurance deductibles. If you move from a $500 deductible to $2,000 and sock away the premium savings, you’ll quickly accumulate a buffer that covers the new deductible several times over. When deciding, ask yourself: “If I had to cover my deductible tomorrow, could I?” If the answer is yes—and the savings justify the change—you’re already ahead of the curve.

One surprisingly fun aspect is reviewing credit card benefits. I log into my account dashboard, print out the list, and compare it line by line with my current standalone insurance coverages. If a card already provides rental protection or trip cancellation, I cross those extras off my insurance renewal shopping list. This way, I pay only for what’s necessary. How well do you know your own card benefits?

Consider giving yourself a calendar reminder each year—during tax season or your birthday, for example—to sit down and audit any insurance you pay for monthly. “In preparing for battle I have always found that plans are useless, but planning is indispensable.” Dwight Eisenhower wasn’t talking about insurance, but the mindset fits: regular review makes a world of difference. Most people skip this entirely, hoping the original choices stay valid forever.

What I want you to take away from this is that insurance isn’t a set-and-forget task. By gently prodding these policies—asking questions and recalibrating coverage to life’s realities—you can free up hundreds or thousands of dollars each year. That money can go to savings, debt payoff, travel, or even charitable giving. Why fund an insurance company’s bottom line when you can put the same dollars to work for your own goals?

If you’ve never checked your term life premiums, gather two quotes this month. If your driving record is spotless, see if a quick online course could net you a discount before renewal. Is your home covered for an old value? Time for a new appraisal. Does your health insurance cost more than your routine care? Crunch the numbers on a higher deductible, especially if your savings can handle a sudden bill. And have you matched your credit card benefits with your specialty insurance coverages? One short review can highlight big overlaps—and new savings.

The key is not waiting for a nudge from your insurer or for your bank account to force you into budgeting mode. You drive this process. Review, adjust, and make each policy earn its keep. Remember, “Price is what you pay. Value is what you get.” Warren Buffett’s words always ring true in the realm of insurance. When you make each policy pay its own way—never more, only what’s needed—you reclaim not just money, but control over your financial future. How will you use your savings differently this year?