North Carolina Insurance Commissioner Mike Causey recently told local media that his office has been receiving complaints that insurance companies are using tactics to steer consumers to specific body shops for repairs. 

Causey told WRAL that, legally, consumers have a right to choose their repair shops, and he wants consumers to file a complaint with his office if they experience insurance company steering. 

“After an accident, many rely on their insurers to help guide them through the repairs process, but Commissioner Causey says in some cases, there’s a little too much guidance,” the WRAL story says. 

Causey gave examples of insurance companies pressuring consumers to specific shops by saying there could be a delay in starting work, including six weeks of waiting for an adjuster to see the vehicle at another shop. 

The Insurance Federation of North Carolina spokesperson John Hardin told WRAL, “North Carolina currently has anti-steering laws in place (N.C. Gen. Stat. 58-3-180). The members of the Insurance Federation of North Carolina take those laws seriously, and I have reason to believe that if any carriers or their agents were violating North Carolina state laws that they would be held accountable for such actions.

“I would also add that many, if not all, carriers train their agents and employees to inform customers of their right to choose any body shop.  Oftentimes, consumers do not have one in mind, and when they inform their agent or carrier, some insurers may offer suggestions. In those instances, carriers and their agents must inform the insured that they are under no obligation to follow the suggestion and that the insured may repair his or her vehicle wherever he or she chooses.

“Our carriers enjoy a great working relationship with Commissioner Causey and are always happy to sit down with him and his team to ensure that consumers across the state are protected and that the carriers I represent are strictly following the law.”

Billy Walkowiak, CEO of Collision Safety Consultants located in Belmont, North Carolina, told Repairer Driven News that he was part of a roundtable discussion with Causey in mid-June. It included representatives of auto body shops and independent appraisers. 

Walkowiak said the Department of Insurance called the meeting because of numerous complaints the office received from consumers about steering and other issues. 

He said multiple issues were discussed, including steering and insurance companies interfering with the appraisal clause process. 

Body shops at the meeting told Causey they’ve been seeing an uptick in steering, including insurance companies telling consumers that they must use a specific shop or their warranty will be voided, or they’ll be forced to pay out-of-pocket expenses. 

“The consumer may think they don’t have a choice because of the way the insurance company presents it,” Walkowiak said. 

He added that at least one more meeting between body shops, appraisers, and Causey is expected to happen in the near future.

Images

North Carolina Insurance Commissioner Mike Causey speaks during a roundtable meeting held in mid-June with collision repair shops and appraisers/Provided by Billy Walkowiak