Auto Repair Shop Sues Insurance Companies for Scaring Away Customers
The purpose of carrying insurance is to avoid financial catastrophe in the event of an unforeseen hardship, but insurance companies manage to make their claimants go through plenty of hassles before they get any financial relief. Consider that “don’t get sick” is the best financial advice both for people with health insurance and for those without. How much do you stress about finding an in-network physician within commuting distance of your home or workplace? Unfortunately, the consumer-unfriendly nature of the insurance industry extends beyond health insurance. When you try to get the insurance company to reimburse you for your financial losses when an item of property you have insured gets damaged, the insurance company finds every excuse to deny your claim or pay you as little as possible, and it has plenty of resources to dedicate to the pursuit of this goal. Unfortunately, claimants are not the only ones who have grievances with insurance companies; companies whose business depends on making insured repairs have a few gripes, too. If you are in a line of work where you bill insurance companies for the services you provide to beneficiaries, but the insurance companies do everything possible to get out of paying, contact a Washington, D.C. small business lawyer.
Steering Is for Cautious Drivers, Not for Penny-Pinching Insurance Companies
Auto insurance companies are supposed to reimburse customers for repairs to their cars after an accident; the specifics of which repairs and other accident-related costs are covered varies from one policy to another. The customers should choose the repair shop, not the insurance company. Maryland has laws against “steering” customers toward in-network repair shops, which repair cars at a lower cost to the insurance company.
Total Recon Auto Center, an auto body shop in Rockville, specializes in the repair of Tesla vehicles, which contain autonomous driving features uncommon in other models of cars; therefore, repairing Tesla cars is a specialized skill beyond general auto body repair. Total Recon has filed a lawsuit against the insurance companies State Farm and Allstate. In the lawsuit, Total Recon alleges that the insurance companies steered their insured Tesla owners away from taking their cars to Total Recon for repairs after a collision. The insurance companies sent letters to claimants, informing them that the choice of repair shop rests ultimately with the claimants but encouraging them to take their cars to certain repair shops that, according to Total Recon, charge the insurance companies less. Total Recon alleges that, not only do the insurance companies’ actions harm Total Recon financially, but they also harm vehicle owners. They claim that, when customers take their Tesla cars to a non-specialist repair shop, they are setting themselves up to need more costly repairs in the future.
Contact Tobin O’Connor Ewing About Business Disputes
A Washington, D.C. small business attorney can help you if dealing with insurance companies is as much of a hassle for you as it is for patients and vehicle owners. Contact Tobin, O’Connor, and Ewing in Washington, D.C. or call 202-362-5900.
Source:
bodyshopbusiness.com/maryland-body-shop-sues-state-farm-allstate-over-steering/