Savings on insurance costs can add up to a hefty sum for former smokers. That's because it's common for one of the first questions on the medical history questionnaire of a health insurance application to be whether or not you smoke. Because of the many health risks associated with smoking, most health insurance providers consider smokers a liability, and charge them more for their monthly premiums to account for the increased risk of insuring them. That increase varies according to their location and the health insurer, but can be anywhere from $20 to $50 per month [source: Associated Press]. Even if you have health insurance through your employer, you might have to pay an extra fee on top of your premium. However, some states have laws that don't allow businesses to discriminate on the basis of whether or not someone smokes.
But the extra $240 to $600 dollars you could pay annually in health insurance costs is only the tip of the iceberg. Life insurance providers charge smokers up to double the usual monthly premium, due to their increased risk of cancer and other fatal diseases. Believe it or not, even homeowner's insurance can be less expensive for non-smokers. Many insurers offer a 10 percent discount to non-smokers, since smokers are statistically more likely to burn down their houses.