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New York State Auto Collision Technician’s Association
Press Release January 22, 2009
New York State Insurance Department Issues press release regarding illegal steering Investigation
Some practices raise concerns; consumers’ right to choose where to have cars repaired must be protected, Superintendent says
The press release says that while most auto insurance companies have not systematically violated a section of the State Insurance Law that gives consumers the right to choose where they want their vehicles repaired after a collision.
Insurance Superintendent Eric Dinallo said. “But it does raise some issues which the Department is addressing directly with certain individual insurance companies. Consumers have the right to choose where they want their cars repaired after an accident. Companies are allowed to discuss the benefits of their programs, but they are not allowed to use the claims process to lead or mislead consumers into making a particular choice at what is usually a stressful time.”
In addition to forbidding insurance companies from requiring consumers to repair their cars at a specific shop, Section 2610 of the Insurance Law also prohibits companies from recommending or suggesting to their insureds that repairs be done at a particular place or shop unless their insured expressly asks for a recommendation. That means a company cannot make a referral – to its preferred program or repair shop, for example – during the claims process unless and until their insured asks for one.
While we are disappointed that a clearer message was not conveyed to the insurance industry, the DOI recognizes the consumer protection arguments, and acknowledges that some acts did constitute violations of the law, but came up short of considering the conduct a steering violation. We see this as an important first step in DOI acknowledging that greater oversight may be needed.
Contact Edward Kizenberger Executive Director 631-941-9647
Ed Kizenberger
Executive Director
NYSACT/LIABRA
greenmtn@aol.com
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