Steering occurs when an insurer attempt to force a claimant toward a preferred repair shop or Direct Repair Program. (Credit: majivecka/Adobe Stock)
North Carolina Insurance Commissioner Mike Causey is raising awareness about the right drivers have to select their own auto repair shop when they are involved in a wreck.
In a conversation with WRAL, Causey reported his office has received multiple complaints from insured drivers who say their insurance carrier was pressuring them to use certain repair shops. This practice is most commonly referred to as “steering,” and it occurs when an insurer attempt to force a claimant toward a preferred repair shop or Direct Repair Program (DRP).
A DRP is a network of auto repair shops and dealerships approved by an insurer. These shops often have agreements with an insurance company to provide repairs for a predetermined rate and within a specific timeline. While these programs save insurance companies money on claims, opponents of the practice argue that it results in compromised repair quality and consumer control, as well as potential conflicts of interest.
Most states have anti-steering laws on the books, North Carolina included, but some insurance companies are still finding tactics to encourage claimants to a particular shop without outright forcing their hand.
“Many times the insurance company will say, well, you can do that, but we may not be able to start work on it or get an adjuster to even look at anything for six weeks,” Causey told WRAL. “But if you'll take it to our place down the road, we can look at it tomorrow or today. And so, if that type of technique is used, we need to know about it so we can look into it.”
There are currently 17 states that are still without anti-steering laws, including Alabama, Alaska, Florida, Hawaii, Idaho, Indiana, Iowa, Massachusetts, Missouri, Nebraska, Nevada, New Mexico, Tennessee, Utah, Vermont, Virginia and Wyoming.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.