Before you cut back insurance, consider discounts, adjustments

— -- Cash-strapped families might be tempted to let insurance policies lapse or, at the very least, reduce auto, home and life insurance coverage.

That may be possible in some cases, but making dramatic changes may not be necessary to save money. "Families should consider whether a short-term saving is worth the long-term risk," says Roger Sevigny, president of the National Association of Insurance Commissioners.

As you consider ways to cut corners on your insurance, you should start by shopping around. Many people stick with their policy for years without comparing prices and may be missing a much better deal. And if you rely on different insurers for your home and auto insurance, bundling them together with one company could save you money.

"In many cases, that simple act of bringing together your auto and home insurance can save you hundreds of dollars a year," says Paul Ballew, a senior vice president for Nationwide.

Keep in mind that price is not the only important factor. "When you see a price that you like, you want to make sure that you're not buying from a company that also gets more than their fair share of complaints," says Amy Danise, editor of Insure.com. Most state insurance departments release annual rankings that show the relative number of complaints for insurance companies.

Some other belt-tightening tips:

Car insurance

• Increase your deductible. Comprehensive and collision insurance coverage usually has a deductible, which is the amount of money you pay before your policy kicks in. You could raise it from $200 to $500 or even to $1,000. That could lower your cost by 15% to 40% or more, according to the Insurance Information Institute. "Even a very, very high deductible — even higher than $2,000 — is better than having inadequate insurance, because you're in some way capping your loss," says Jeanne Salvatore, senior vice president of the Insurance Information Institute.

• Consider dropping collision and/or comprehensive coverage if you've had your car for four or more years. You can check the National Automobile Dealers Association's used car guides to see what your car is worth, Danise says. It may not be cost-effective to continue insuring a car that is worth less than 10 times the amount you pay for coverage, the Insurance Information Institute says. That's because you may receive a claim payment that would not substantially exceed your premiums minus the deductible.