There are many factors taken into account when determining one’s insurance rates. While wealthy people have more assets to protect, they still manage to spend less money on insurance policies, and there are several reasons why. Firstly, one of the major factors that plays a role in locking your insurance rate is your credit score. Insurance companies use your credit record as a way to predict the likelihood of you filing a claim on your insurance policy. People with higher credit scores are considered less risky clients, so they get lower rates on their policies, while people with lower credit scores receive higher rates. Wealthy people tend to have very good credit scores because of their assets, and for the same reason, they are also not likely to file small claims since they can afford to pay those out of pocket.
Another reason why wealthy people spend less money on their insurance policies is their ability to network and use their business and personal connections to research the best options for insurance. They also have less time to compare policies on their own. As a result, many wealthy people use the services of independent agents who do the comparison between multiple insurance companies for them and find the best insurance rates for relevant policies. Non-wealthy people generally think they cannot afford the services of an independent insurance agent and choose policies of the insurance providers who advertise on radio and television, such as Farmer’s or State Farm.
However, the services of a licensed agent at Team Insurance are absolutely free for any individual, and using these services has a number of benefits for the consumer. First, an independent agent will research multiple insurance carriers across the US and will choose the policy with the lowest rate and the most appropriate coverage for your particular situation. Second, you will receive valuable advice from a licensed professional in the industry at absolutely no cost to you. Moreover, independent agents will be able to assist you with any questions about your insurance policies even after you purchase your coverage. Contact Team Insurance today for more details on how we can assist you with your insurance needs.