Insurance is something you rarely think about, aren’t necessarily fond of shopping for, but the reality is – living without it can lead to dire consequences. When partnering with the best Palatka Insurance Agency, you can rest assured that you are protecting yourself from financial loss by covering your health, vehicles, homes, businesses, and possessions. When you take a moment to understand how insurance works, you will get a better idea as to why it is so important.
Insurance involves sharing risks. When you buy an insurance policy, you pool your money with others who have also purchased policies. The larger the number of individuals involved, the more solid the insurance protection. By taking in money from several people, an insurance company is able to collect the funds to help the small percentage of individuals who will eventually file a claim. Sharing the risk between many policyholders increases the benefits that can be provided to those who own policies.
Probability and Risk
Premiums are determined by the probability of an event occurring. Combining the probability with the law of large numbers, and analysts can determine what amount can be charged for certain premiums that are fair for everyone involved. A good example of this concerns people who live on or near a flood plain. Because they live in an area where flooding has occurred in the past and is likely to occur again at some point, their risk is inevitably higher than someone who does not live near a flood plain.
What Happens to Your Premiums?
Insurance companies collect premiums for several reasons. First, they have an obligation to pay claims to individuals who report a loss. Next, as a business, they must pay expenses that the business incurs. This involves maintaining an office and paying agents for the work they do. The amount that is left over, is invested in an attempt to increase their holdings and help to turn a modest profit. Every premium you pay goes into making the insurance system work more efficiently.
There are several social benefits associated with insurance. When a person or business experiences any type of loss, the financial repercussions can be devastating. By providing the money to cover their losses, insurance helps businesses to remain open and gives individuals what they need to start a new life. With insurance, individuals are able to invest their money knowing that if an accident does occur, they will not be financially bankrupt.
Hiring an Independent Agent
Hiring an independent agent ensures you will get the best insurance policy for your individual needs. Independent Insurance Agencies like Bates Hewett & Floyd have access to multiple insurance companies and can choose from those top-rated companies to find the best possible fit. At Bates Hewett & Floyd, our agents are able to evaluate your needs and find the right insurance company that will help you protect your future.
Bates Hewett & Floyd
When you think about an independent insurance agency in Northeast Florida, you probably think of a small to medium-size office run by a family or a few employees. If you have never visited or been inside Bates Hewett & Floyd, you have not experienced the big picture. With 30 employed professionals (currently seeking additional candidates to join the team) we are one big family (some blood, most not) that spans three offices and are spread throughout the many facets of insurance that Bates Hewett & Floyd.