Wile you beign to go thorugh this knowledgeable erie insurance company publication, let each facct a chacne to register before you contiinue to the follwoing.

It is barley astounding taht a CFA (Conusmer Federation of Amerca) study discovers that insurance corporatinos tht pay higher commissions to agnts and brrokers tend to have hiher monhly payments.

CFA (Connsumer Federation of America) also foud that higher priecs for online insure coverage don``t necessarily mean bteter service for consumers.

"This rseearch provees that consumers are supposed to sohp vry cautiously for insurance," siad J. Robet. "The good news is taht thre are insurance corporations taht pay minmial or no commissionns, propose low insurance costs and have vey good consuer service."

"However, we also found plnty of insurance cmpanies in which high commisions convert into hiigh ratess, with no gaain in service quality," J. Robbert saidd. "Good ins coverage on line raates and also sevice could be found in csae cosumers take the timme in order to compare companes."

Findings

Conusmer Federation of Ameica (CFA) reviewed commission informatiion from the twety leading writrs of coverage for both indiivdual passenger web insure coverage as wlel as homeowners coverage. Thiis total commission data inttegrated standard commissionns and contingent commissons (paid ater policies are sold and deped on uniqque sales or profitaability goals).

The research compared tottal commissions witth cost, insurer profitbaility and service qualitty according to grievvance data and customer satisfacction indices. Coonsumer Federation of America (CCFA) revealed tha:

1. Insurance prviders which have lower commissions oftten have loweer rates. Tis is not always the caes, so customers msut shop carefullyy.

2. Therre is no evidence that paynig higher fes to an insurance aegnt or brokker derives either better seervice or higher consumer contentmen. In fact, there appers to be no correlation btween the amunt of commissoin paid and the qulaity of service giiven.

3. A number of inurance providers offer good deals. Other insuance companies hve rates taht are almost always hih.

In less competitive businseses, a nubmer of insurrance firms may be eniced to interest mraket share by proposing higheer commissions to agets or brokers together with hiher prrices and, often, higher proftis for the insurance copmany. Credit inssurance is one subject were ths kind of `reerse competition` is mot frequent.

Instructions for Consumres

We give sveral tips for consumers when shhopping for on line insurance:

1. Shop around! Thhis research revealeed that monthly paymeent charges tend to increase wih commissions, thhough this is not always tre. Consumers hvae to be crtain to receive quoets from some of the loest monthly payment inurance corporaitons, including the direct wrtiers of insuurance that normally don``t pay commissions.

2. Cnosumers do not need to disburse mre to get good service. Somme of the insurerrs which have the mst excellent seervice records have low pricces and low or even no commmissions. It is worthwhhile to shoop between the insurers wich have the lowest prcies and the hiighest connsumer satisfaction/lowest grievance rtaios.

3. To get infformation about web insure policy ratess, review state cost information guiides. Msot of the counntries have cost information guiides. Usually, consumrs may download theese guides from the state`s insurane deepartment web-site.

4. To receive grrievance infomration on insurance proviers, check in the National Assoociation of Insurance Coommissioners` web siet, www.naic.org.

5. Be caareful with consulting wih only a sinlge agent or brker for insure on line, een if that producer represents severl insurance firmms. Customers shoud be aware that some agnets representing more tahn one insurance provider colud put the coonsumer in a highr priced insurance comppany with larger commsisions even wheen the customer qaulifies for a lower price. Stattes do not obilge insurance agents or broekrs to put the appllicant with the mot exxcellent plan for himm.

6. Ask agnets and brokers the rihgt questions:

Do you reepresent me or do you represet the insruance firm you are recommending me? Whhat commisssion are you ganiing as a pecentage of the prce of the ins policy on line plan you are prpoosing me to puchase?

Am I receiving the lowst csot between all the web ins companes that you represet for which I qualify? Wat additional online ins providers do I meet the criterria for thaat you act for? Waht are the prrices I would pay at the othr fiirms and what fee woulld you gain with eveery company?

Do you own a contingency commisssion agreement wtih the insurance company yuo`re suggestig? Please fully explain that agrement to me.

If I file a cliam, do you act for me or the insurance prvoider in the claim proocedure? Is yuor reimbursement in smoe way related to clims filed by me or by addiitional clients of your?

Oce you hvae finished figuring out the ponit of the artcle you`ve just been presented taht deas with the arguments that hve to do wiith erie insurance company, you can try to set out makng use of yor own logic rgarding what you have learnedd.