Miscellaneous

Connecticut AG Speaks Out Against Insurers? Direct Repair Programs

By E L Eversman

Again this year, Connecticut Attorney General, Richard Blumenthal, is trying to ensure that repaired vehicles returned to his State’s and the nation’s highways are safe.

At yesterday’s press conference Connecticut’s Attorney General demanded that consumers be permitted to exercise their free choice in selecting the shop to repair their vehicles. Standing next to college student, Lyn Moreau, who’s vehicle had been unsafely repaired at a Progressive “concierge” facility, Mr. Blumenthal stressed that legislation is necessary to stop insurers from directing consumers to use “preferred body shops”.

Consumers deserve to choose where a car is repaired. No insurer should straightjacket or corral consumers, forcing them to use a so-called preferred shop. This legislation, which I have advocated for years, would preserve consumer choice and industry competition - deterring anticompetitive relationships between certain insurers and auto repairers.

AG Blumenthal was joined in his call for legislative reform by Republican State Senator Leonard Fasano, demonstrating that this problem is a concern for both political parties. Senator Fasano said,

It is clear we can no longer rely on existing laws to protect consumers following an auto accident. Consumer protection is a bipartisan issue. It’s time to make our laws stronger so people like Lyn Moreau will no longer be at the mercy of the insurance giants.

And that’s just where Lyn Moreau found herself in her dealings with her insurer, at its mercy. Unfortunately, she didn’t get any. After initially recommending she use its “concierge” facility, Progressive allowed the vehicle to be handed back to Ms. Moreau in an unsafe condition. She discovered the safety problems when she took her vehicle to a different body shop, and that shop told her the bad news. When Moreau addressed the issue with Progressive, her insurer told her to take her vehicle back to the “recommended” repair shop that butchered it originally. So much for that “Lifetime Repair Guarantee” Progressive claims it gives you if you patronize one of its direct repair shops.

Most interesting is that under Progressive’s “direct repair program agreement” with repair shops, Progressive retains exclusive authority to write all of the repair estimates and supplements, thereby dictating the manner in which a vehicle is to be repaired. It would certainly be interesting to see if Progressive was responsible for “writing” the unsafe repairs, or whether the shop simply cut corners.

Nonetheless, Progressive woos consumers to use the concierge service and maintains that it inspects the vehicle after it is returned from the repair shop to ensure the quality of repair. Lyn Moreau’s vehicle repair is evidence that the Progressive concierge quality inspectors can’t tell safe repairs from dangerous ones — which should scare all of us.

More on this story at the Hartford Courant.

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Full post as published by AutoMuse on January 18, 2008 (boomark / email).