When money is tight, cutting corners on insurance may seem a tempting way to save money.

But dropping needed coverage can be an expensive mistake. Better to shop around, comparing prices and services for the insurance you need - not just during tough times, but always.

"Remember, competition only works if the consumer shops for coverage," emphasize consumer guides you can download for free from the consumer information page of the National Association of Insurance Commissioners Web site, www.naic.org.

"Comparison shopping takes time but it will save you money," says the NAIC, an organization of state regulators. The key, they say, is to know the coverage you need before you start comparing prices.

I consider coverage against potentially catastrophic expenses a must - things such as a major illness or extended disability, seriously injuring other people in an accident, having the house destroyed by a fire or hurricane, or dying prematurely without providing for my family.

I can handle moderate losses on my own and generally choose the highest deductible, saving thousands of dollars in car, homeowners and windstorm insurance premiums over the years.

Insurance needs vary among different people. Through its online "Insure U," accessible from its main Web site, the NAIC provides extensive consumer information on insurance, including home, auto, health and life, based on our stage in life (for example, whether we are single or married, young or old, raising children or grandchildren).

You also can search for consumer information on many subjects, including insurance, at the Web site of the Consumer Federation of America (www.consumerfed.org), a not-for-profit advocacy group. A useful resource geared to insurance is the Insurance Information Institute, www.iii.org. Although the Institute is also not-for-profit, it is supported by the insurance industry and may be considered "pro-insurance." But its site is chock-full of solid information and savings tips. Continued...