Other common mistakes include not being honest on an application or providing inaccurate information. This can lead to higher premiums, lower coverage or even the cancellation of your policy. Avoid these costly errors by taking a close look at your coverage options before you buy. Then, you'll be able to ensure that your policies are the best fit for your personal situation. For example, some people make the mistake of skimping on health insurance in order to save money. But it's better to pay a higher monthly premium and have more coverage than to be under-insured and end up with shockingly high out-of-pocket expenses.