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State Representative Joe Mullery

403 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-4262

For more information contact: Christina Gosack 651-296-5524

Posted: 2006-02-02 00:00:00
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NEWS COLUMN

AUTO INSURER CAN NO LONGER DIRECT WHICH REPAIR SHOP YOU USE


In the past, it was common for auto insurance companies to require their insureds to have the vehicle repaired at a particular repair shop that did business with the auto insurance company.

Under a new law we passed, which became effective August 1, the auto insurance company is prohibited from coercing or inducing their insureds to have their vehicle repaired at any specific repair shop.

In fact, the insurer must use a script when talking to the insured that states, “Minnesota law gives you the right to choose a repair shop to fix your vehicle. Your policy will cover the reasonable costs of repairing your vehicles to its pre-accident condition no matter where you have repairs made. Have you selected a repair shop or would you like a referral?"

Further, once the insured person has indicated to the auto insurer that the insured has selected a repair shop, the auto insurer must not attempt to influence the insured to use a different repair shop. The insurance company is only permitted to recommend a repair shop if the insured does not indicate any preference.

This new law does not apply to auto glass repair, which is covered by a previous law that is similar.

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