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What Is a Per Diem fee Retaining to automobile insurance?

Why can insurance agencies charge whatever fee they want?!?

  • I work for an insurance agency, and I don't understand how they are allowed to charge those high fees. It's anywhere from $1 to $375! That fee is a accidental & death benefit so if they pay $50 they get $5,000 only and if they die in a car accident. Then the customer has to pay in addition to whatever fee their first month bill. Of course that is my commission, but we are suppose to look at customers like they are stupid? If they agree to pay me that much for a premium of $30 a month for their car insurance. This agency wants us to see how much people are willing to pay, but we only get a 20% out of it. Not only insurance, but also in tax refunds people just charge unreasonable fees. I can see why they say selling insurance is the second most profitable business in the U.S.

  • Answer:

    Actually... insurance agencies can't just charge what ever they want. Insurance rates are approved by the states department of insurance. As another poster said....your post is very confusing.

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I tried to follow you but got lost.

Zarnev

Many states do NOT allow an agency to charge a fee on top of receiving commission. But it doesn't sound like you're talking about a FEE. The price you pay for an insurance line of coverage, is not a FEE, it's a PREMIUM. Huge difference. MOST agencies aren't out to rake people over the coals, like the one you're apparently working for. Apparently, you (and your emloyer) are probably working off a predatory system, more likely in a poor neighborhood. If it really bugs you, don't be part of the problem - open up a competing business, and treat people right.

mbrcatz

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