Anti-Steering Affect Car Insurance Premiums
A few states, most notably Connecticut and California, have recently passed anti-steering laws. For the uninitiated, an anti-steering law prevents a car insurance company from forcing its customers to use certain repair shops, which in turn prevents them from insisting on after market or low quality parts. In short, it’s a pretty good thing that these laws are being passed, and we’ll probably see them crop up in other states before long. The bad news is that the anti-steering laws can potentially affect car insurance premiums. Here’s a look at how you can expect your insurance rates to change if you live in a state that’s implementing anti-steering laws.
The first, somewhat obvious point is that when car insurance companies are steering their claims to a certain auto shop, it’s typically because they’re paying the bill. They can sometimes negotiate to get lower rates, and steering doesn’t automatically mean that the consumer is being taken advantage of. But it can. And because some car insurance companies take advantage of customers in this way, the anti-steering laws were introduced as a measure to combat dishonesty.
In the affected states, insurance companies are required to inform customers that they can use their choice of repair shops, and if they’re providing a recommendation, that’s fine, but they have to pay out regardless of where the customer goes. This can lead to higher repair bills for the insurance companies, which leads to higher insurance premiums for the customers at large.
This assumes that there’s no measure in the anti-steering laws that prevents insurance rates from raising due to the new policies, and there’s definitely measures to prevent the insurance companies from raising your premiums just because you went to a repair shop that they didn’t want you to use.
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 Anti-Steering Affect Car Insurance Premiums |
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Car Insurance FAQ Informations
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