Americans will continue to cut spending

A new survey out from Allstate Insurance Co. and National Journal (called the “Heartland Monitor Poll”) reveals that 80 percent of Americans expect to cut their spending in order to make ends meet or to provide a cushion of financial stability for the future.

When you’re looking to cut spending, your insurance bills may seem like an obvious choice at first. But here’s the rub: Insurance protects your financial interests as much as a big fat savings account.

For example, drivers who have recently raised their car insurance deductibles to high levels in order to reduce premiums have sometimes found they have shot themselves in the foot: They get involved in car accidents and then can’t afford their deductible level.

So before you cut back on your car insurance or home insurance levels, consider whether a big car accident or major house damage would lead to even more financial pain than paying the insurance bills.