Because of the increased mortality risk associated with smoking, smokers almost always pay more for life insurance than their nonsmoking counterparts. Some life insurance companies distinguish between moderate smokers (20 or fewer cigarettes per day) and heavy smokers (more than 20 cigarettes per day) and offer somewhat lower rates for those who smoke less. Rising cigar popularity raised numerous questions about how to classify cigar smokers.

Each insurance company has its own method of evaluating applicants, so the points on your driving record may or may not have a direct impact on the rates you pay for auto insurance. And, you should know that only "moving violations" will affect your insurance rates. Parking tickets and other non-moving violations are not used by insurance companies.

Home insurance also covers injuries and property damage caused by you, your family (or pets) to other people. This liability coverage for will pay for medical payments to third parties, and legal costs if a lawsuit is brought against you. The insurance will also usually cover any living expenses you incur, if you're unable to live in your house because of a fire or other covered incident.