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Montana Directs Auto Insurers to Avoid Steering

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Montana State Auditor John Morrison is reminding property and casualty insurers doing business in the state that a new law recently went into effect to protect Montanans’ right to choose an auto body repair shop after an accident. The law prohibits a practice known as steering, when an insurer asks a customer to use a specific auto body shop for estimates or repairs after an accident.

In 2007, the Montana Legislature passed Senate Bill 204, a law changing the requirements for automobile repair estimates. Any insurer that issues or renews an auto insurance policy in Montana will no longer be able to ask a claimant to go to a particular repair shop to obtain an estimate of damages resulting from an auto accident.

Prior to this change, an insurer could ask the claimant to go to a specific shop for estimating purposes, but not for the actual repairs of the vehicle. The change in law now prohibits an insurer from asking the claimant to go to a specific shop, even for the initial estimate. With this change, the claimant has the right to decide where to take the vehicle for the initial estimate and for subsequent repairs of that vehicle.

The insurer still has a right to have its own appraiser or adjuster inspect the vehicle for a repair estimate. And upon a consumer’s request, an insurer can provide a list of direct repair facilities for the actual repairs, but the consumer retains the right to choose where the repairs will be done.

“These laws were put in place to protect a consumer’s right to choose. Montanans need to know that they have the absolute right to go the shop of their choice for estimates and repairs after an accident,” Morrison said. “Insurers that have not updated their claims handling practices to ensure that they comply with Montana’s new anti-steering law would be well advised to do so and to immediately make any necessary changes.”

Questions regarding the law can be directed to 800-332-6148.


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