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Auto Insurance Repair Shop Preferred Practice Pressures Policy Holders
01:34 p.m. EDT, September 03, 2009

Auto insurance repair shops - What should be common knowledge that auto insurance policy holders have the legal right to have their damaged vehicles repaired at any auto repair shop they choose is being challenged by some insurers who encourage or coerce them to use their preferred shops. Connecticut Attorney General, Richard Blumenthal is requesting a federal investigation of this practice, which is a prevalent criminal behavior many insurers practice.

By coercively guiding policy holders to auto repair shops where they can control the wages of mechanics, insurers can save money on claims. This practice is putting unfair pressure on honest competitors who must find other ways to defray rising expenses. Policy holders are also victims, who may end up with shoddy repairs performed by underpaid mechanics with insurers breathing down their necks.

U.S. Attorney General Eric Holder has been asked to investigate insurers such as State Farm, Allstate and GEICO due to an outpouring of petitions from auto repair shops in 48 states. Individual insurers counter that they offer the choice to policy holders to shop from any alternative outside their "direct repair programs."



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