is insurance considered a fixed costs
The same is true if you pay rent. You could change this expense by moving to a cheaper home or getting a roommate, but these are major lifestyle changes. Your health insurance, car insurance, life insurance, and homeowners or renters insurance are also examples fixed costs.
This means that some element of the cost is fixed and another element is variable. This is common with insurance policies in which a minimum premium must be paid regardless of sales or payroll volume, but some part of the premium is variable based on company growth.
Short Answer. Fixed costs are those cash expenses that must be paid whether the business produces or sells a single product. Common examples include rent, insurance, salaries and interest. There is a difference between the cost accounting definition and the financial accounting definition. In cost accounting, fixed costs are offset by the contribution margin. In financial accounting, the gross margin is used to cover fixed costs.