Insurance Companies That Steer Auto Repair Customers To Body Shops May Be Breaking The Law
Connecticut Attorney General Richard Blumenthal on Tuesday sent a petition to U.S Attorney General Eric Holder urging him to investigate insurance companies that steer auto repair customers to body shops of their choosing. According to a 1963 Consent Decree with the U.S. Department of Justice insurers were ordered to stop sponsoring any appraiser, directing, advising or otherwise suggesting that any person or firm do business with any independent or dealer-franchised automotive repair shop, exercising control over the activities of any appraiser and fixing or controlling the prices charged by automotive repair shops for the repair of damage to a vehicle or for labor in connection therewith, by use of a flat rate.
Blumenthal said companies that deny consumers the right to choose their own auto repair shop may be breaking both federal and state laws. "Practices pressuring consumers to use insurers' preferred repair shops suppress consumer choice and disregard legal duties," he said. Indeed, insurance companies that deny consumers the right to choose the most appropriate repair facility for their car may be breaking the law.
If you are a consumer who was denied by an insurance company the right to choose the most appropriate auto repair facility for your car, please contact us to discuss your legal options.