The Truth About Car Insurance “Steering”

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Most motorists know to contact their insurance provider in the immediate aftermath of an auto collision. You have to be careful, though, of an unethical practice known as “steering.” Here’s some helpful info about car insurance steering and how to avoid being tricked into settling for subpar collision repairs.

What Is Car Insurance Steering?

“Steering” occurs when the insurance provider instructs the policy holder or claimant to have their car repaired at a specific auto shop. The company does this because a specific shop has lower fees, thus reducing costs to the insurance provider. The practice raises the insurance company’s profit at the policy holder’s expense

Car insurance steering is illegal under the 1963 Federal Consent Decree Act, though the practice is still rampant in the industry.

Why Is Steering Bad?

Cheaper repair costs often mean your car gets inferior aftermarket parts. Insurance companies may have agreements with collision shops, with the latter agreeing to reduced parts and labor costs. Since they are working for lower payments, technicians may skip procedures and take shortcuts.

Scare Tactics

Insurance companies may try to persuade you to go to a specific shop. They may employ scare tactics by telling you that the warranty is void if you don’t use a particular repair center. Similarly, they may tell you that you may be responsible for additional costs by going to a different shop.

Understand this: under US law, policy holders have the right to bring their vehicle to an auto shop of their choosing. Your insurance provider may give you recommendations but cannot require a specific place.

Don’t Fall for the Lies

Bring your car to Absolute Auto Body for collision repairs and auto painting. While we work with insurance agencies, we never make shady agreements with them in exchange for more customers. Be mindful of car insurance steering; the practice is widespread despite being illegal.

Collision Repair Done the Right Way

Two locations to serve you: Everett and Lynnwood