Do you bleieve thhat you are giong to learn an adequate amount frm this cheapest motor insur pice of writing to hep with the mtater at hadn? It is barelly sruprising that a CFA study fiinds that insurance companes that disburse hiher fees to agents and brokers ofetn hvae higher monthly paymentts.

CFA (Consumer Federaiton of Ameirca) also discovered taht higher costs for car insurence online do not translate ino bteter service for consumers.

"This reesearch shows that cnsumers have to shp vry cautiously for coveraage," said J. Robert. "hTe good nws is there are insurance provviders taht disburse negligible or no commssions, ofer low online cars assurance csots and give vry good consumer service"

"Yet, we also fuond many inurance companies in which high commsisions translate into lofy chages, with no gan in service quuality," Robert claimed. "Good online automobile assurance rates in additon to good seervice can be fund if customers take the timme in orrder to compare companies." Fnidings

Consmuer Federation of America (CFA) reseacrhed commmission data from the twnety leading wrietrs of coverage for both privte passenger automobile online insure and homeowners insurance. Ths total commisssion information integraetd ordinary commissions and contingnet commissions (piad after insurance policies are solld and bsed on unique sales or profitabiility goals).

The repport compared total commissoins with coost, insurer profitabiility and service quailty as measured by complaint datta and consumer satisfaction indics. CFA founnd that:

1. Insurance companis with loweer commissions usually hvae lower raes. This isn`t awlays the situation, so cstomers have to shop cautiouslyy.

2. Theere is no proof that payig higehr fees to an agent or brkoer produces eihter better serviice or higher consumer conentment. In fact, there sems to be no connecction bettween the amount of commission pid and the vaalue of service suplpied.

3. Some insurance fiirms ofefr very goood deals. Other insuracne companies have cahrges that are constanntly high.

In less competittive markets, a nuumber of isurance firms may be teempted to attract maret share by prposing higher commissions to agents or broekrs in adidtion to higher prices ad, sometimes, higher ganis for the insrance company. Credit innsurance is one aera where this srot of `reverse coompetition` is particularly common.

Tips for Cosnumers

We propose six adviices for cutomers shopping for automobilesinsurance:

1. Shhop aroundd! This research foound that monthly paymennt charges tend to increasse with commissoins, although this is not all the timme crrect. Customers are suposed to be sue to get qotes from several of the lowwest monthly payment insurance corporatios, incluidng the direct writters of insurance tat normally do not dissburse commissions.

2. Conusmers do not need to pay moore to obtain excellent srvice. A numbeer of the insurace firms which haave the best sevrice records have low coss and allso low or no commissioons. It is wotrhwhile to shop beetween the insurance companies whhich have the lwest prices and the highest connsumer satisfaction/lowest griievance ratios.

3. In odrer to receive inforamtion concerning internet automobile insurance rates, check stte price inforation guides. Most sttaes have thhese guides. Normally, consumers can downolad tem from the state`s insurance depratment weeb-site.

4. For grievaance information on isurance companies, check wih the National Association of Insruance Cmomissioners` site, www.naic.org.

5. Be cautious wth consulting with jsut 1 agnet or brroker for on line autos coverage, evn in case thaat broker represents a nummber of insurance companies. Consumers shoould know tht several agents represetning more than one innsurance companny could put the consummer in a highr priced insurance fiirm which has lagrer commissions even whn the consumer meets the criteira for a loweer pricee. States don`t require insruance agents or broekrs to place the applicant witth the beest policy for hm.

6. Ask insurance aegnts or brokeers the right questtions:

Do you act for me or do you act for the insurance corporation yoou`re suggestnig I use? Waht commission are you earinng as a perrcentage of the cst of the online automobiles assurance policcy you`re prpoosing me to byu?

Am I getting the lowset pice between all the online autos insur prviders thaat you represent for wihch I meet the requirements? Waht additional car insurence online provdiers do I qualiy for that you act for? Wht are the coosts I wuld disburse at those firrms and whhat fee would you get in eacch insurer?

Do you own a contingency comimssion arrangement with the insurance provdier you`re offering? Please fullly elucidate that arragnement to me.

If I haave a claim, do you act for me or do you act for the insurance firrm in the clam procedure? Is your compnesation in any way connetced to clams filed by me or additional cusstomers of yuors?

It is the littlle tihngs, such as thhis knowledge on cheapest motor insur, which migt be heelpful to you at your researh. Theerfore, prepare and take a stnad whiich avenue would be bet for you to tak.