If you're wondering how an insurance company makes money, the answer is pretty simple: they make money by charging you more than you think your policy is worth.
The way they do this is by using "surprise" charges and hidden fees. They may charge you an extra $10 for each claim or a $100 fee for canceling your policy after one year. This is because they know that you don't want to throw away a bunch of money in order to pay for something you already bought, but they also don't want to give up any profit margin.
So what can you do about it? First: learn about the different types of insurance policies out there so that you can make a good decision about which one best suits your needs (and budget). Second: read through your policy carefully and pay attention to any "surprise" charges or hidden fees. you might find them as easy to avoid as those extra charges on your state income tax return.
The way they do this is by using "surprise" charges and hidden fees. They may charge you an extra $10 for each claim or a $100 fee for canceling your policy after one year. This is because they know that you don't want to throw away a bunch of money in order to pay for something you already bought, but they also don't want to give up any profit margin.
So what can you do about it? First: learn about the different types of insurance policies out there so that you can make a good decision about which one best suits your needs (and budget). Second: read through your policy carefully and pay attention to any "surprise" charges or hidden fees. you might find them as easy to avoid as those extra charges on your state income tax return.
