Connecticut Attorney General Blumenthal looking to reform auto insurance industry practices
Connecticut Attorney General Richard Blumenthal is urging the federal government to investigate the practices of some auto insurance companies who only allow their customers to get their vehicles repaired at certain mechanic shops.Connecticut Attorney General Richard Blumenthal is urging the federal government to investigate the practices of some auto insurance companies who only allow their customers to get their vehicles repaired at certain mechanic shops.
Blumenthal's stance looks to reverse what has been a longstanding policy of many auto insurers who have preferred mechanics that they send their customers to when vehicles are in need of work.
Critics of the policy argue that it takes business away from auto body shops that have not been singled out by insurers and could also lead to shoddy work being done in order to complete more repairs than one shop should be accommodating.
"Problematic practices persist," Blumenthal told Bloomberg of the current auto insurance landscape. "We're asking the federal government for an immediate review and remedy to stop coercive and deceptive tactics."
Blumenthal added that he had received petitions from auto repair shops in 48 different states supporting a request for a federal investigation to be initiated and "really send a very powerful message that this problem is pervasive across the country."
According to the Hartford Courant, Blumenthal will forward the petition to officials at the U.S. Justice Department, including copies of the various petitions from the repair shops across the country, and request relief from "onerous and arbitrary insurer practices harmful to auto repairers and deny consumers the unfettered right to choose the most appropriate repair facility for their car."
Learn how easy and convenient shopping for auto insurance can be. Get your free auto insurance quotes today!
Posted: September 2, 2009
Related Auto Insurance Articles
- Drunk driving may be more widespread than expected September 1, 2009
- California Department of Insurance sees spike in auto insurance fraud cases during recession; August 27, 2009
- Plan your auto insurance coverage to properly accommodate your needs August 25, 2009
- Fifty cars involved in Florida auto insurance fraud case August 19, 2009
- Hertz Rent2Buy enters rental company into sales industry August 19, 2009
- Customers reporting highest satisfaction with auto insurers in five years, but trouble may be on the horizon August 18, 2009
- Elderly drivers who are unaware of their medication's side-effects may be a danger on the road August 12, 2009
- California family arrested in auto insurance scam August 11, 2009
- New Jersey court approves PIP medical fee schedule after two-year court battle August 11, 2009
- Organized fraud rings cost insurers, drivers, big money August 11, 2009