Owners of body and glass repair shops in Nebraska are voicing concern over a practice called steering. Some car owners who need damage repairs say they are being pushed toward certain shops that are less expensive but might not do the job right.
When Steve Kahl of ABC Glass gives an estimate on a broken car window, the customer usually comes back for repairs but he says a couple of times a month they'll call back and cancel an appointment and the reason frustrates him.
Kahl says, "Their insurance company wants them to go someplace else, which is frustrating to us. We've already ordered the glass, already scheduled the customer to come in."
That's called steering, when an insurance company nudges a vehicle owner toward a certain shop that might not be the customer's first choice.
Jim Champion, of Charlie Graham Body, says an insurance company might tell a client, "'You can take it to the shop but if you have problems, we won't help you. Our shops have guarantees. I don't know if yours does.' That can get where they're pushing you to a certain shop, making you feel uncomfortable."
Legally, insurance companies can't force you to use a specific shop. They can only limit how much they pay on your claim.
After complaints from the Nebraska Auto Body Association that some customers are led to believe they have no choice, the Department of Insurance sent out a reminder to insurers suggesting that each company review its claim procedures.
Within a couple of months, the Nebraska Auto Body Association will offer brochures that body shops can pass out to customer telling them their rights regarding where they can go to have their vehicles fixed.
A bill introduced in the Nebraska Legislature would require that insurance companies inform policyholders of their rights to choose repair shops. The proposed law made front page news in the national magazine of collision repair industry.
Insurance industry representatives say the steering bill is unnecessary because nearly all companies let customers know up-front that they have a choice about who repairs their vehicles.
If a policy holder feels pushed toward a particular shop, they can file a complaint with the Sate Department of Insurance.