Don't skimp out on insurance

You should never skimp out on insurance. Insurance is for those times that are catastrophic (i.e. house burns down, you hit something/someone in your car, you lose your arm - and you are a surgeon, or you end up dying and leaving your dependents in debt). Make sure you have enough insurance to cover your specific situation.

Being frugal doesn't mean skimping out on insurance for catastrophic events. You need to be frugal lifestyle-wise (i.e. buying normal clothes, having normal 'stuff' - rather than designer), but when it comes to shelling out for the appropriate amount of insurance, you should do so.

When it comes to insurance, shop around and don't engage in high risk activity that could increase your premium. Increase deductibles but keep an appropriate amount in the bank in case you have to pay the deductible. Ask the insurance company how to go about decreasing your risk (i.e. install fire alarms, driving less, etc) and ask if there are any discounts associated.