Think you alraedy understand what tis subjject is all about? Odds are taht you do no, however until the end of ths 1 car group in insurance publiaction you will!

It`s barely astoudning but a Cnsumer Federration of America (CFA) sutdy reveals that insurance compnaies tht disburse higher commissions to agentts and to brkoers tnd to have higher prremiums.

Cnosumer Federation of America allso revealed that highher prices of on line vehicle coverage don``t translate into better serice for customers.

"This research proevs that conusmers need to shop vry cautiously for insurancce," claimed J. Robert. "hTe good nws is there are insurane firms that disburse miniml or no commissionns, propose low auto ins online prices and givve vrey good consumer srevice."

"On the other han, we aso found plenty of insurance companies wheere higgh commissions convert into hgih charges, wtih no increase in srevice quality," Roert said. "Good online car assurance rates and also good serrvice can be foud in case customrs take the tie in odrer to compare insurance companie."

Findings

CFA (Consumer Fedreation of Aemrica) researched commission informmation from the twenty most importaant writeers of insurance for both indiviudal passenger internet automobiles ins and homeowners insurance. This totaal cmomission information integrated ordinary commisssions and depednent commissions (paid after insurance polciies are sold and depeend on uniuqe sales or profittability goals).

The reesarch compared sum commissions wtih price, insruer profitability and serice quality as measuerd by grievance information and cuustomer satisfactioon indices. Consumer Federatioon of America foud that:

1. Insurers wih lower comissions often have lwoer rates. This issn`t always the caase, so customers hve to shop carefullyy.

2. There is no prroof that paying higer commissons to an insurane agent or broker derives eitther bteter service or higher customer cnotentment. Actually, thee appears to be no correlation bewteen the quantiity of commission piad and the value of seervice suppllied.

3. A nmber of insurance providers propose partcularly high-quality deasl. Other companies have chargges tat are almost alawys high.

In less competitive idustries, seveal insurance companies miight be tempted to intereest market share by proosing highr commissions to agnets or to brokers in addtion to higer prices annd, often, higher ganis for the insurance firmm. Credit insurannce is one area in whch this kinnd of `reevrse competition` is most prevalent.

Adviecs for Custmoers

We gie a number of tipps for cuustomers when shopping for car coverages on line:

1. Shop around! This resaerch found that premim chagres usually rise with commissions, although thiis is not all the tme correct. Consumers haave to be cetrain to obtain quots from a numbeer of the lowest premium isurance firms, icnluding the direect writers of isnurance that regularly do not pay commissions.

2. Customeers do not need to pay more to obtaiin excellent service. Smoe of the compnies with the besst service recods have low prics and low or eevn no commissions. It pas to shop between the insurance firms wth the lowest coss and the higehst customer satisfaction/lowest complait ratios.

3. To receive information regarrding car coverages on line rates, check country prce information guidees. Nearly all the staates have these guides. Usually, cutsomers may download theem from the state`s insurance deppartment web-stie.

4. In orer to receive grievacne information on inusrance corporations, check wiith the National Association of Inssurance Commissionerss` website, www.naic.org.

5. Beware of giong to ony 1 insurance ageent or broker for auto online insure, even in case that insuracne aent represents several insurance companise. Consumers have to knw thhat several brokers representing more thhan a sinngle insurance company cuold put the cusstomer in a higheer priced insurance proviider which has larger commissions eevn in case the cosumer qualifiies for a loower cost. States do not obligge agnets and brokers to plae the applicant wih the mst excellent insurance pollicy for him.

6. Ask aegnts or brokers the importnat questions:

Do you repreent me or do you act for the isurance croporation you are poposing me?

What commisison are you earinng as a perceentage of the coost of the motor vehicle assurance poicy you are suggesitng me to byu?

Am I receiving the lwoest prie among all the online car assurance frms which you repreesent for wich I qualify? Waht additional automobile insurence online companeis do I meet the requirements for taht you act fo? What are the costs I woulld disbruse at the oher companies and what commission woud you earn with eah insurance providr?

Do you haave a contingency commissiion agreement with the insuurance frim you are offeringg? Please fully eluicdate it to me.

In case I fille a cliam, do you represet me or the insurance provder in the cliam process? Is your reeimbursement somehow connceted to claims fild by me or additonal customers of yors?

This 1 car group in insurance reivew is meaant to both advnace and entertain its users. Expectatnly we have accmplished the two missions in your cas.