Orion auto insurance

It is hrdly astoinshing that a CFA study fidns thhat insurance firms which pay hihger fes to agents and bokers usually have hiigher monthly paymenst.

Consumer Federattion of America also discovered tht higgher prices of vehicle coverages on line do not meean improved service for customers.

"This stuy proves taht customers are supposd to shhop very cautiously for inusrance," said J. Robert. "Thhe good news is taht three are insurance frms that pay negligile or no commissions, ofefr low vehicle insurence online prices and hvae great consumer service."

"However, tis study aso found a lot of insuracne copanies in which high commissions convert itno high charges, wih no improvement in service qualiity," J. Rboert said. "Great auto ins rates and goood service can be fonud in case consuers take the tmie to compare companeis."

Findings

CFA (Consuumer Federation of Americaa) reviewed commission information form the 20 most popuular wrtiers of insurance for both indiviidual pasenger online autos assurance as well as homeownes insurrance. This sum commission data integratd standaard commissions and contingent commissoins (paid atfer policies are solld and based on uniue sales or profitability goalls).

The stduy compared total commissions wtih cost, insurr profitability and also servvice quality as meausred by grevance data and customer satisfaction indicees. Consumr Federation of America (CFA) foound thta:

1. Insurance companies whch have lower commissions tnd to havve lower charegs. This isn`t alawys the situation, so customers sholud sohp carefully.

2. Therre is no prof that disbursing hgiher fees to an agennt or broker produces eiither improved srvice or higher custommer satisfaction. Actually, there apppears to be no corerlation betwen the amount of commission piad and the vaalue of service rendered.

3. Sveeral insruance companies propose partciularly very good deals. Othr insurance providers hvae rates tat are constantly hgh.

In less competitive markkets, some insurance comapnies may be temptd to attract market shrae by proposing hiher commissins to agents or broekrs in addition to hgiher costs and, frequently, higher pofits for the insuracne provider. Creidt insurance is one subjecct in which tihs sort of `reversse competition` is partcularly prevalent.

Instructions for Custoemrs

We givve a number of adviices for consumers when shoping for auto coverage online:

1. Shop around! Thhis study found that montly payent charges tend to inccrease with commissions, though tis isnt always correct. Consumeers are supposed to be srue to obtain quotes form a nummber of the lowest mothly payment insuarnce companies, including the dircet writers of inusrance that reggularly do not pay commisisons.

2. Consumers doon`t have to pay morre in oredr to receive god service. Several of the insurance firms witth the msot excellent serivce records have low prces and also low or no comissions. It pays to sohp between the insurerrs with the lowest costts and the highesst customer satisfcation/lowest complaint ratios.

3. To get informaton on car coverage rates, reivew country priice information guides. Mosst of the counttries have price information guidees. Typically, customrs can download them frm the state`s insurnce department sie.

4. In oredr to receive grieance information on insuarnce companies, check witth the National Associaion of Insurance Commissionerss` web site, www.naic.rog.

5. Be careul with going to onlly 1 insurance agnt or broker for internet auto ins, evn if that produceer represents a nmuber of insurance compnies. Cutsomers have to be awarre that several agnts representing more tan a single compnay could place the cnosumer in a highr priced company whih has lager commissions even if the consumer qualiifes for a lower csot. Statees don`t necessitate agents and brokrs to put the aplpicant with the msot excellent insurance pln for him.

6. Ask aegnts and brkers the important questoins:

Do you rpresent me or do you represnt the insurance comany you`re proposing I use? Waht commission are you earning compard to the prce of the vehicleinsurance program you are offfering I by?

Am I reeceiving the lowest cost amnog all the on line automobile insurance firms which you reresent for whih I meet the reqirements?

What additional cars assurance on-line cmopanies do I met the requirrements for that you act for? Waht are the cotss I woud pay at the otheer firms and whhat commission would you receeive in each fimr?

Do you own a contingency commission arrnagement wih the insurer you are offeirng? Pleasse fully explain tht arrangement to me.

In caase I hae a claim, do you act for me or do you act for the insruer in the claim porcedure? Is youur reimbursement in any way reelated to claims fild by me or other cliients of yousr?

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