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Our family owns a collision repair center. A large insurance…

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Our family owns a collision...
Our family owns a collision repair center. A large insurance co in which we were one of their recommended shops for repair along with one other shop in town. They now have changed the program that the customer must go to the other shop for the insurance co to write the estimate. They use to come to both shops. Is this not illgal due to they are stering the customer and to that shop? When we are both on the recommended repair. Another large insurance co use to do this have a drive up shop for estimates but it was not at a shop it was their own privated building and then the customer was given of choice of shop for repairs. I have had 3 customers today tell me that the insurance company was trying to make them go to the other shop?? What is the law in regard to this?? We live in Iowa.
Submitted: 8 years ago.Category: Business Law
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Answered in 1 hour by:
6/12/2010
Business Lawyer: Dimitry K., Esq., Attorney replied 8 years ago
Dimitry K., Esq.
Category: Business Law
Satisfied Customers: 41,221
Experience: Run my own successful business/contract law practice.
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Thank you for your question.

No, it is NOT illegal for a company to prefer to get an estimate from a specific shop. However ultimately the insurer is able to go to whatever shop he wishes for a valid and certified estimate. Whether or not the insurance company may choose to accept it is up to them, but they cannot force or otherwise require that they get an estimate solely from that location. Just get the insurer to fight for their right to get an estimate wherever they wish.

Good luck.

Edited by Dimitry Alexander Kaplun on 6/12/2010 at 2:31 AM EST
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