Insurance is a broad topic that includes protections of homes, cars or boats, personal health, and life itself. It is designed to protect against financial loss resulting from unforeseen circumstances by sharing or pooling the risk of loss with other policyholders.

Frequently Asked Questions
  • How do insurance companies make money?

    Insurance companies generate revenue from premiums paid on outstanding policies and net profit on the difference between revenue and policy claim expenses.

  • How does an insurance broker make money?

    Insurance brokers typically earn commissions on the sale of policies, either on a flat rate per policy or on a percentage of the insured amount.

  • Why do insurance policies have deductibles?

    Insurance policies often have deductibles, especially with health and auto insurance, in order to partially offset the cost of providing coverage by the company and can keep premiums lower if customers opt for higher deductible amounts.

  • Do men and women pay the same for insurance coverage?

    There is definite gender bias in insurance coverage depending on type of insurance. With auto insurance there can be gender discrimination tied to income and credit scores, while with life insurance women generally pay lower rates due to longer life expectancy.

  • Can bundling insurance policies save money?

    Yes, insurance carriers typically offer significant discounts for those who have multiple types of coverage with their company, such as bundling car and homeowners insurance.

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