The bad news is that despite the fact that the industry has had two more years to get this e-commerce business right, consumers could still pay hundreds of dollars more per year depending on what Web site they happen to use.

In our last survey, the lowest and highest quotes on the same risk differed by $1,266, but in the 2004 survey conducted this month, the lowest and highest quotes differed by $846 (on annualized basis) certainly an improvement in consistency. Still, the annual price difference should be enough to frighten most consumers and discourage them from dropping their agent and going it alone online.

Perhaps of greater concern is that most of the rates differed when they came from a carrier Web site versus an aggregator, and the difference could be an increase or a decrease. While common sense should dictate that getting auto insurance from a third party would cost more than getting it direct from the insurer, that didnt always hold true at least in terms of online quotes. Thus, consumers who use their common sense may end up paying an uncommon premium.

The purpose of the survey was to sample the consumer's experience of searching online for auto insurance quotes. While price was the key concern, quality and responsiveness of the sites were also important. The findings, however, are in no way intended to rate the aggregator sites or auto insurer sites visited.

In searching for quotes, I laid down parameters that could be used at any site. Since I reside in New Jersey, where many companies will not write auto business, I reported that I was moving to Missouri. I used an actual street address from a random business card taken from my Rolodex.

I pre-selected numbers for bodily injury and property coverages, along with medical expenses, deductibles and other figures. The same numbers were submitted at each Web site, within the limitations of the question fields on those sites. (It is worth noting that there are considerable differences in questions asked at different sites.)

With everything in place, I began my journey into the world of online insurance, looking for auto quotes on my still-trusty 2000 Toyota Celica GT.

I first visited insurance aggregator InsWeb (www.insweb.com), which was easy to navigate, as it had been in past years. I had to take a bit longer filling out the forms, since I was married last year and InsWeb (as well as most other sites) wanted information on my wife.

In 2002, InsWeb said it applied a discount if I was a graduate of a two- or four-year college or technical program. This time, they just asked about highest education level completed for both me and my wife.

I received online annualized quotes from Electric Insurance Company ($1,399) and Unitrin Direct ($1,804, the highest quote I received). I was promised e-mail quotes from AIG and American Family Insurance. AIG came into my mailbox at $1,434. Two days after requesting a quote, I had received nothing from American Family.

I then visited Electrics own Web site, where I received a quote on the same risk for $1,726 per year$327 more than at InsWeb. The differences I saw on the policy breakdown were significant increases in both the collision and comprehensive premiums.

I tried the same thing at Unitrins Web site, and came up with a quote of $1,804identical to what I had gotten at InsWeb. Unitrin (as well as some other sites) insisted on my permission to access credit scores in order to deliver a quote. While I generally dont like to give such permission, especially on the Internet, I did so for purposes of the survey. Consumers may also find this a bit of a stumbling block.

Visiting AIGs Web site, I received a quote of $1,378$56 less than via InsWeb, but definitely in the ballpark.

The next stop on my Web journey was Insure.com (www.insure.com), which was comparable in navigation and ease of use to InsWeb. They actually asked for less information, yet provided four online quotes: Travelers ($1,378 annualized), AIG ($1,552 annualized, more than either InsWeb or AIGs Web site), Liberty Mutual ($1,431 per year), and Safeco Insurance ($1,304 annualized).

As I had before, I went directly to Travelers' own Web site for a quote and received a figure of $1,639 per year$261 more than at Insure.com. I wanted to compare breakdowns on the policy, but I was unable to find pricing details on Insure.com.

Having already visited AIG, I moved on to the Liberty Mutual Web site, where I was told I could get a premium of $1,375 per year$56 less than at Insure.com.

Finally, I went to Safecos Web site and answered the questions needed to get an online quote. I ran into a problem when I couldn't produce my wife driver's license number (I wasnt too crazy about having to enter my own), so I had to ask for insurance only for myself. At the end of all the questioning, however, Safeco said they were unable to provide me with an online quote, leaving me feeling frustrated. I can't imagine other consumers would feel any happier.

My final visit was to Esurance (www.esurance.com), which also provides auto insurance to InsWeb customers under an agreement announced last year. Here after answering very few questionsI received an annualized quote of $958, easily the lowest figure I had seen. Esurance apparently issues its own policies.

The site cautioned, however, that this premium was “an estimate.” Indeed, most of the sites had such disclaimers, but Esurances was more prominent. Interestingly, their figure did not take into account credit scores. So much for my “excellent” credit.

Overall, consumers who search for insurance online face the same daunting challenges they did two years ago. Buying insurance online may pay off, or consumers may lose, big time. It took more than a full day of work to get the quotes mentioned here, and it is doubtful that many insurance buyers will spend that long shopping for auto coverage.

Also, there is no rhyme or reason to pricing differences between carriers offering direct sales and aggregator sites like InsWeb and Insure.com. Ironically, the more a consumer looks, the more confused he or she is likely to become.

The best way to cut through the confusion remains the traditional way. Use online resources to do some research, then take your findings to a real, live agent who can tell you what insurance costs in the real world.

The odds of getting the best deal on auto insurance by eliminating the middleman agents and shopping online are not good. Indeed, prices can vary widely for the same coverage and carrier.

Reproduced from National Underwriter Edition, June 18, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.