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 , 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
Was this article valuable?
Here are more articles you may enjoy.
Need Wind Mitigation? New Florida Insurer Wants to Help With That 
A Super Yacht Armada Came to Miami, Leaving a Marine Graveyard in Its Wake 
Florida’s Unemployment Rate Is Surging Even as High-Profile Companies Move In 
How Insurers Know When It’s Time to Scale AI 
