"I detest life-insurance agents: they always argue that I shall some day die, which is not so" - Stephen Leacock, Canadian Economist

I've written several times about the imporatance of having the right insurance. See Renters Insurance, Financial survival after a disaster , and When should you spend to save? If you are still not convinced then check out another great posting by Code Name Insite called Insurance 101. In it he covers the basics of insurance for Health, Home/Rental, Auto, Life, and Disability.

Bottom Line
Insurance is imporant for coverage in worst case scenarios like the complete loss of your house or car. But don't rely on it to cover every expense. Insurance companies are in business to make a profit. Statistically they expect you to pay more over your life then you will collect from them. Minimize your costs by raising deductibles and paying for minor events out of your own pocket.