Insurance companies earn money mainly from the premiums customers pay. They also invest those funds and make profits on the difference between the income received and the claims paid out.

Insurance brokers are usually paid through commissions. This can be a flat fee for each policy sold or a percentage of the policy’s value, depending on the agreement with the insurer.

Deductibles help share costs between the insurer and the policyholder. By agreeing to pay a portion of expenses upfront, customers can often enjoy lower premium rates, especially with health and auto insurance.

Not always. Rates can vary by gender depending on the type of insurance. For example, women usually pay less for life insurance due to longer life expectancy, while men and women may see differences in auto insurance rates based on factors like income, driving history, and credit scores.

Yes. Many insurers give discounts when customers combine multiple policies, such as auto and home insurance. Bundling can be an easy way to reduce overall costs while keeping all coverage under one provider.