Auto Repair Shop Antitrust Actions May Be Consolidated into Multidistrict Litigation
Over the course of the last several months, auto body repair shops in five states filed antitrust actions against a collection of auto insurers, alleging that the insurers' direct repair programs violate the antitrust laws.
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#1 Jul 13, 2014
As a former shop owner I am aware of the insurance company tactics.
They are not to benefit the customer they are to benefit the profits of the insurance companies. To be in programs shops must discount prices on parts and labor rates to keep costs on repairs to a minimum. The customer is the one who looses, paying the price with poor quality parts shoddy labor etc. I am not saying that all shops who participate in insurance programs are performing poor quality work but,iti creates an environment where cost cutting is needed to turn a profit.This insurance practice also cuts out smaller local shops who don't have the volume to run on a lower profit margin. The customer is led away from a trusted local shop to one that profits the insurance company. If this practice continues in this direction customers will have to go to assigned shops and the conditions will continue to short change the consumer and drive local shops that don't want to compromise quality and customer satisfaction out of the market. Consumers paying their premiums should always take their vehicle to a shop where safety and customer satisfaction are the goal, not insurance company profits.
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