We misperceive the risks we take each day. Even though we think that airplanes are more dangerous that driving, more people die in traffic accidents than in plane accidents. You need to think rationally about the risks you take and understand the consequences of your chosen activities in order to understand the true risks you take in your life. By understanding, you can minimize risks to yourself.

Did you know that driving a car is more dangerous than living in the inner city? Or that smoking is worse for you than being exposed to toxic waste? According to physicist Bernard Cohen, our biggest risks are the ones of which we're least aware.

Part of the reason is the publicity and horrific nature of certain risks. After all, being exposed to toxic waste is a lot scarier than getting into a bad traffic accident. The news will probably devote more time to the toxic waste spill, too. However, toxic waste will reduce your lifespan by only a week or so. Driving, on the other hand, is likely to take half a year off your life.

What's more likely to happen?

We misperceive how likely things are to happen to us, in part based on our familiarity with our behavior and how long it will take for the behavior to affect us. While driving lowers your life expectancy by about six months versus the hour and a half of your life you'll lose living next to a nuclear power plant, driving is more familiar to people, so they see it as less risky. In fact, bicycling trumps driving and flying as the most risky behavior, yet because it's so common, people don't see it as risky behavior.

Understand the consequences if you don't minimize risks

In order to stop misperceiving how risky your behaviors are, you need to examine them rationally. While you may not be living next to a nuclear plant when it melts down, you may be overweight, which lowers your life expectancy more than a nuclear plant will.

The first step to understanding the consequences of your actions is to find out what behavior is actually risky. Ask your doctors what poses the biggest hazard to your health. Get some statistics from the Department of Motor Vehicles about how many cars crash per month, and search the Internet to find out the risk factor associated with your hobbies.

Change your behaviors

Some risks simply can't be insured against. However, you can change your behavior in order to minimize risks.

Minimize risks - Part One

When you're driving, for instance, guard yourself against drunk drivers. Make sure your car has a high safety rating, drive defensively and stay off the road during days when more drunk drivers are on the road than normal, such as the Fourth of July or New Year's Eve.

You can also further minimize risks to yourself while driving by giving your car proper maintenance. Inspect it regularly to make sure that your headlights and tail lights haven't burned out, that your tires aren't soft and make sure that your car's fluids aren't low each time you get an oil change.

Minimize risks - Part Two

In order to minimize risks to your health, exercise regularly and make sure that your weight is healthy.

You should also concentrate on your diet. Don't overeat, and make whole grains, fruits and vegetables a staple of your diet instead of processed foods, especially those with partially hydrogenated oil, also known as trans fat. You should avoid drinking too much alcohol, as well.

Reducing stress can also minimize risks. Learn relaxation techniques, such as deep breathing or meditation, and use them to calm yourself when you feel stressed.

Don't let insurance risks play on your fears

Several insurance policies cater to your fears by offering you coverage on events that are unlikely to happen. Flight coverage is an excellent example of this. While flying in an airplane reduces your life expectancy by about four days as opposed to driving, you won't find anyone offering you driving insurance on a trip-by-trip basis.

If you find yourself looking at insurance that offers you specific insurance against something you fear, ask yourself these questions:

Is the coverage broad? If you're only getting insured against one thing, you should avoid the policy. Otherwise, you're paying the insurance company simply for peace of mind.
Does the coverage insure you against something specific? Several of the coverages that play on your fears are the extended warranty coverage of electronics, flight insurance and cancer insurance. While these are all legitimate fears, if you're afraid of getting cancer, you're more likely to buy cancer insurance than the more general-sounding health insurance.

How likely are you to need this insurance? You have less chance of needing an insurance policy tailored to protect you against something specific that you will if you purchase a broad coverage policy. If you're going to pay for a policy, you should pay for one that will be likely to help you.