You have the right to take your car to any automotive collision shop of your choice after an accident. At Details, LTD., we repair your car correctly with quality parts and stand behind our work with a lifetime warranty. Read below for the TDI bulletin on illegally steering customers to cheap auto body shops.
August 20, 2010
Regulator Warns Auto Insurance Companies About ‘Steering’
AUSTIN – Texas Commissioner of Insurance Mike Geeslin issued a warning bulletin to auto insurers, reminding them that it is illegal under Texas law for insurers or their agents to directly or indirectly engage in practices that constitute “steering.”
The bulletin was issued based on reports that some insurance companies may be directing claimants to use a repair shop from a list of preferred repair shops. Texas insurance law clearly states that the claimant has the right to select where a motor vehicle is repaired. Another concern addressed in the bulletin is that some insurers may attempt to steer claimants indirectly by suggesting, either verbally or in writing, that other reasonable repair costs might not be covered unless claimants use a preferred repair shop or specific part to make the repairs. Similarly, it is considered improper to pay claims based on artificially low repair costs. Such practices could lead to substandard repairs.
According to the bulletin, these types of behavior would be considered unfair claim settlement practices, and could lead to an investigation and possible enforcement action.
Commissioner bulletins are issued periodically to advise the insurance industry about practices the Texas Department of Insurance (TDI) considers critical to maintaining compliance with state law and rules. Commissioner Bulletin B-0031-10, addressing the practice of steering, is available on the web at www.tdi.state.tx.us/bulletins/2010/cc30.html.
Anyone with an insurance-related complaint may contact TDI by calling the toll-free Consumer Help Line at 1-800-252-3439; filling out an online complaint form on TDI’s website, www.tdi.state.tx.us; or e-mailing TDI at ConsumerProtection@tdi.state.tx.us. To report a case of suspected insurance fraud to TDI, call 1-888-327-8818.
Taken from: http://www.tdi.state.tx.us/news/2010/news201032.html
For more information contact: PIO@tdi.state.tx.us