Insurance – Company or Agency?

by | Jul 4, 2013 | Insurace

What is Insurance?

Throughout our lifetime, we are all exposed to some sort of risks, particularly from any sort of accident. Should something go wrong, there is usually a financial consequence that we have to face. Insurance is basically our putting aside a relatively small sum of money that should provide coverage for us in the event of an accident or other bad effect on our lives or property. Someone with sufficient funds calculates the risks and costs and offers to pay on our behalf. In return, we agree to pay them money either in installments or on a lump sum basis. The monies collected from many people add up to the fund from which the few, who have the accident, can be compensated.

Insurance – You Need It – How to Get It?

The average person could never afford to put by sufficient funds to cover costs incurred by accident so they have to seek out someone to assist them in the event of need. In other words, they purchase their insurance cover from someone else. There are relatively few reliable insurance companies who sell their products (known as policies) directly to the public. Normally, the sale will be arranged through an Agency (sometimes referred to as an insurance broker) similar to Auto Insurance Traverse City MI.

Auto Insurance as an Example

For many, the purchase of an automobile is a relatively large investment that we would not wish to lose through an accident totally wrecking our auto. Also, any auto accident can also involve damage not only to our property but also to that of others. In addition, there is the question of hurt or even death to us or others. To cover such risks we really do need to contact someone like Auto Insurance Traverse City MI to explain our insurance options to us.

With any insurance, the higher the risk, the higher will be your financial contribution – i.e.:- your premium. Different types and sizes of vehicle carry different risk factors, as does the main purpose for which the vehicle is to be used. The driver’s age, experience and record are also part of the risk assessment. This is where an insurance agent such as Auto Insurance Traverse City MI would be your wisest choice. Go direct to an insurance company and all they will offer you are their standard policies. Go to an Agency and they can pick and choose from amongst the Companies to find the one best suited to your, individual circumstances. Visit , one of the independent insurance agency serving Traverse City MI.

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