Arkansas Commissioner: Insurers Can’t Mandate Use of Designated Auto Repair Shop

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

Arkansas Insurance Commissioner Alan McClain is reminding insured Arkansans seeking automobile repairs that insurance companies cannot require automobile repairs be done at a specific repair shop.

“If an insurer inaccurately informs you that your vehicle’s coverage is contingent upon utilizing a particular preferred vendor, they are in violation of the law and will be subject to penalties,” McClain said in a media release.

Under Arkansas law and Insurance Department Rules, consumers have a choice in where they get their vehicle repaired following an accident.

Under the Trade Practices Act of the State Insurance Code, an insurance company may not require that repairs be made by a particular contractor, supplier, or repair shop as a condition of payment of a claim. Doing so is an “unfair claims settlement practice,” the Arkansas Insurance Department’s release said.

While insurers may provide a list of preferred repair shops, consumers are not obligated to select one of those preferred vendors. Arkansas consumers maintain the freedom to choose the repair shop to which they take their vehicle.

Source: AID

Originally posted at: https://www.insurancejournal.com/news/southcentral/2021/06/04/617310.htm

Are you starting an INDEPENDENT agency?

Get Your Agency StartUp Checklist Today

More News

The Biggest Cyber Threats to Law Firms

Risk is all around us. There’s the extreme physical kind, including earthquakes and sidewalk punchers. Then there are digital risks, like hackers who target individuals