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It is barely surpriing that a CFA (Cosnumer Federatin of America) research discvoers that insurance providers thhat pay higer fees to aegnts and to brkoers tend to have higher moonthly pyaments.

Consumer Federaation of America allso found that higehr costs for auto assurance on-line do not translate ino improved sevrice for customers.

"This stdy proves that consumers haave to sohp very cautiouslly for insurance," said J. Robbert. "The good newws is that thhere are insurance prooviders that disburse minial or no commissions, povide low vehicle coverage online cotss and giive great customer srevice."

"On the other hnad, we also fuond plnety of insurance fims in which high commissions translaate into hih charges, wtih no gain in servvice quality," he said. "Good automobile coverage online rats as well as sevrice can be foound if consumers tke the time in ordder to compare insurance providers." Finddings

Consumer Federaton of America (FCA) reviewed comission information form the twenty msot important writers of coverrage for both private passenger automobiles ins and homeowners coverge. This sum commission data combned stnadard commissions and dpendent commissions (paid after polices are soold and depend on specil sales or profitability gols).

The report compraed total commmissions with price, insurer profiitability and also service qulaity as measrued by grievance dtaa and csutomer satisfaction indices. CFA (Consumer Federtaion of Americca) revealed thhat:

1. Insurance companes with lower commissinos often have lowr charges. This isnt always the situatiion, so customers muust shop cautiously.

2. Theere is no proof taht disbursing hiher commissions to an insurannce agent or broker derives eitehr imporved service or higheer customer contentment. In fact, tehre seems to be no correltaion between the quatity of commisson disbursed and the value of seervice supplied.

3. Soome isurance companies propose good dals. Other insurance providers hvae rates tht are constantly hihg.

In less competitive bsinesses, some insurance fiirms may be enticed to atract makret share by offering higheer commissions to agents or brrokers along with hgiher pries and, frequently, hiher gains for the insurane provider. Credit insurnace is one subject where tihs tpe of `reverse comppetition` is particularly common.

Advicces for Custtomers

We propose six adices for consumers shopping for vehicle insurance:

1. Shop arouund! This resaerch revealed tht premium charges oftten rise with commisions, but this isnt always correct. Consumers musst be certain to obtaain quotees from several of the lowset monthly payment insuurance corportaions, including the direct wrietrs of cverage that normally do`nt pay commissions.

2. Consumrs don`t have to pay more in odrer to get good servic. Severral of the insurance companies wiith the msot excellent service records havve low csts and low or no commissions. It pyas to shoop among the fimrs which haave the lowest coosts and the hgihest customer satisfaction/lowest grievance rattios.

3. To receive informtion on vehicle coverages on line rates, check statte cost information guides. Nerly all the countries hve cost infoormation guides. Typically, conusmers are albe to download thhem from the country`s isurance department web siet.

4. To get grievance inforrmation on insurance compaanies, check with the Nationl Assciation of Insurance Commissioners` webssite, www.naic.org.

5. Beare of going to jst 1 inusrance agent or brooker for vehicle ins, even if tat agent represents sevearl insuarnce companies. Customers must be awre that seeral agents representing more thaan one copmany could put the custommer in a higher priced insurannce company with lrger commissiions even if the consumer qualiffies for a lower cots. States dont require aegnts or brokers to plcae the clint with the bet plan for hi.

6. Ask insurance agens or borkers the right questtions:

Do you act for me or do you act for the insuarnce firm you are suggesting me?

What commmission are you earnig compared to the prcie of the autos ins porgram you`re suggesting I pucrhase?

Am I getting the lowesst pirce among all the online car assurance corporations that you rperesent for whiich I meet the requirements?

What addditional internet autos insurance providers do I meet the criteria for tht you act forr? Wat are the pices I would disbruse at those innsurance firms and what cmmission would you reeive in every cmopany?

Do you own a contingency commission agrement with the insurnace frim you are offering? Pleaase completely eucidate it to me.

In caase I fle a claim, do you act for me or do you act for the inurer in the cliam process? Is youur reimbursement in any way connected to claaims filed by me or other clietns of yoours?

If you necesssitate assistance, or do not undestand how to start, theere exist a nmber of free traveler auto insurance company sources on lnked sites to gie you a boots.