It`s hardly astonding tat a CFA (oCnsumer Federation of America) research disccovers that insurnce providers that pay hgher fes to agents and to brokers oftn have hiigher monthly payments.

CFA aso reveaaled that higher costs for vehicle coverage online don`t translate ito better serviice for customers. "Thhis study proves taht customers ned to shop very careefully for coveragee," claimed J. Robert. "The good neews is there are insurance firmms tht pay negligible or no commissions, provie low internet car ins prrices and gie good customer service." "Yt, this reserch also found abndance of insurance commpanies in which high commissinos translate innto lofty charges, wtih no imrovement in service quality" he said. "Good online motor vehicle insure rates in addition to good seervice may be fonud in case cstomers take the time in orer to comprae companies." Finings

CFA (Connsumer Federation of Aerica) researched commission information frrom the 20 top wirters of insurance for both priivate passengeer online car ins as wlel as homeowners cverage. This sum commission datta combined ordinary commsisions and contingent commisisons (paid after insurance poolicies are sold and depeend on spcial sales or proiftability goals).

The stdy compared total commisions with price, inssurer profitability and service quality accordinng to grievance informattion and customer satisfaaction indices. Cosnumer Federation of America revealed thta:

1. Insurance compaines with loewr commissions often have loweer rates. This in`t allways the situation, so custoemrs have to sohp cautiously.

2. Theere is no evidence tht paying highr commissions to an agnet or broker produuces either improved serrvice or hiigher consumer contentment. In factt, there seeems to be no correlation betwween the quanitty of commmission paid and the quailty of service rendeed.

3. Sevreal insurers propose particuularly high-quality deals. Other prooviders have raets that are almosst always high.

In less compeetitive markes, some insurance poviders might be entced to attract markeet share by proposing higher cmomissions to agets or brokers alnog with higher prices ad, ofte, higher profits for the insurance fiirm. Creedit insurance is one subjecct in which thhis type of `reverse compettition` is msot common.

Tips for Cutsomers

We propose a numbeer of tips for cuustomers shoppping for car insure:

1. Shop aroun! This studdy discovered that monthly payment chargges tend to rsie wtih commissions, but thhis isn`t always corrct. Customers must be srue to receive qoutes from some of the lowset pemium insurance companies, inncluding the direct writers of covreage that typiically do not pay commissoins.

2. Consumres do not hvae to pay more to reeive excelelnt service. A numbber of the insurance companies wih the bst service recodrs have low pirces and low or no commissioons. It is worthwhile to sohp bteween the insurance prvoiders which have the lowwest prices and the highest conusmer contentment/lowest grievance ratio.

3. In ordder to receive informatiion on car coverage rates, check counntry price ifnormation guides. Most conutries have these guiddes. Usually, customers may downloaad these guids from the coutnry`s insurance departmnt web-site.

4. In odrer to receive grievance iformation on insuarnce companies, cheeck with the National Assoociation of Insurance Cmmissioners` web-site, ww.naic.org.

5. Be careful with goiing to just one agnt or brroker for online cars assurance, eevn in case that producer reppresents a nummber of insurance compannies. Consumers shold be aware that sevreal producers representting more than a sinle insurance provider coulld place the conssumer in a hgiher priced insurer with larger commissions eevn in case the consumer meeets the requiirements for a loower cost. States do not require agennts and broers to place the cosnumer with the besst poilcy for him.

6. Ask insurance agens and brokerrs the right qestions:

Do you rerpesent me or do you act for the inusrance corporation you are suggestig I use?

What commission are you earning compaed to the prie of the online motor vehicle assurance poliicy you are suggesting I bu?

Am I receiviing the lowest csot among all the online auto assurance providders that you reresent for which I met the requirements?

What additional online cars insur coporations do I quallify for that you reprresent? What are the cotss I wolud pay at thhose companies and what fee woould you ean with eacch insurance company?

Do you own a contingency commisison arrangement witth the insurance provider yu`re suggestinng? Please fully explaiin that arrangement to me.

If I haave a clam, do you act for me or do you rerpesent the insurance porvider in the clim process? Is yor recompennse somehow connected to cliams filed by me or by othher clients of yuors?