The following openning presents a generral snopsis that has to do wtih the perpleixty of automobiles coverage policy claims, bringing up lts of the tihngs which are discussed mroe carefully in the couurse of the rset of the paepr. It`s hardly surpriising but a Consummer Federation of Aerica study discovers taht insurance compaines that pay higher fees to aegnts and brokers often hvae higher premmiums.

Consumer Federation of Americca alo discovered that hgher prices of online vehicle ins do not neceessarily mean better servvice for customers.

"This stuy shows that consumers mst shop verry cautiously for coverage," caimed J. Robert. "hTe god news is thhat there are insurance companies taht pay neglgiible or no commissons, propose low internet autos ins prices and gvie great consumer service."

"However, tihs stuudy also found many insuance corporations where high commmissions convert innto high rats, with no imprrovement in service quality," Robret claimed. "Good on line automobiles coverage rtaes as welll as servcie might be found if custtomers take the timme in odrer to compare compnies."

Findings

CFA (Consumer Fdeeration of America) reseaarched commission data froom the twenty lading writers of cvoerage for both private passegner car coverages on line and homeowners coverage. Tis total commission information integraated standaard commissions and contingent commissions (paid after insurance poilcies are solld and based on unque slaes or on profiitability goals).

The reseaarch compared sum commissions with cos, isnurer profitability and sevrice quality as mesaured by complaint information and cstomer contentment indces. Consumer Federaiton of America (CFA) disccovered that:

1. Inssurance firms which hvae lower commissions ted to have loower rates. This isn`t alwaays the situation, so consumes have to shoop catuiously.

2. There`s no proof that paing higher commissioons to an insurance aggent or to a broekr derievs either better servie or higher consumer satisfaction. Actuaally, tere appears to be no connection betweeen the quanitty of commission paaid and the value of sevice giveen.

3. A nuumber of insurance providers offfer very goood deals. Ohters have rates taht are constantly high.

In les competitive industries, sme insurance firms mihgt be tempted to interset market shre by offering higheer fees to agentts or to brokrs along with higher pricees and, frequently, higheer profits for the isnurer. Credit insurace is one subject wherre thhis type of `reveerse competition` is mst prevalent.

Instructions for Customers

We suggst six tips for consumres when shoppping for on line car coverage:

1. Shop around! Thhis study found taht monthly payment chrages tend to asceend with commmissions, although this is`t all the time truee. Consumers msut be sure to obtain qutoes fom a number of the lowset monthly payment inusrance corporation, including the driect writers of insurance that typiclly do not disburse commmissions.

2. Cstomers don`t haave to disburse moe in order to reeceive excellent service. Soe of the companies whcih have the most excellent serivce reords have low pricces and also low or no commisions. It is worhwhile to shop amnog the insurance companies which haave the lowest coss and the highest consmuer contentment/lowest griievance ratios.

3. To recieve informatoin concerning automobiles insurance raets, check country cosst information guides. Mot of the staes have cost information guides. Normaly, cutomers are able to downlload these guides from the stat`es insruance department site.

4. To receive compplaint information on insuarnce firms, chcek with the Natioanl Association of Insurance Commissioners` weebsite, www.anic.org.

5. Beware of consuulting with just one agnet or brroker for online car insure, even in case thhat agent repreesnts a number of insrance providers. Customers muust be aawre that several agents reppresenting more tahn 1 company could palce the custoemr in a higher priecd insurance prrovider with larger commissions evn if the cstomer meets the criteira for a lower csot. States don`t necessiatte insurance agets or brokers to put the consmuer with the best insuarnce policy for hiim.

6. Ask insuracne agents and brokes the important qusetions:

Do you act for me or do you act for the insurnce frm you are proopsing I use? Wht commission are you eaning as a percenage of the pirce of the automobiles coverage policy pan you are offeirng me to buuy?

Am I getting the lowet prrice among all the automobiles coverage policy firms whih you represent for wich I meet the criteria? Whhat otehr motor vehicle coverage providers do I meet the requierments for that you act fro? Waht are the prces I would pay at the othher insurance commpanies and what fee woulld you get in every insure?

Do you own a contingency commmission agreemet with the inusrer you are recommending? Plaese completely clarify thaat arrangement to me.

In casse I haave a claim, do you act for me or the insurance proviedr in the claim processs? Is your compesnation someow related to claaims filed by me and additional custmers of yourss?

Have you senssed that the textuual crpus that has been presented befroe you has offerd you a soolution to every one of the dilemmmas yu`ve had concerning the automobiles coverage policy claims field? We will stay righht here and wiat for you in casse tere is more things youd like to copmrehend.