The term "insurance costs" refers to the expenses incurred by an individual or a business for purchasing insurance policies that provide financial protection against various risks such as damage, loss, illness, injury or death. These costs can vary depending on several factors including the type of insurance, coverage limits, deductibles and premiums. Insurance companies calculate these costs based on their own set of criteria which includes an individual's age, health status, driving record, credit score, location among others. The higher the risk associated with a particular policyholder, the higher will be his or her insurance cost.