Cheating consumers to improve insurance profits is not a new problem. Insurance companies have long pressured auto body repair shops to compromise quality and safety. Advances in vehicle technologies and other market forces, however, have exacerbated the danger this presents to our motoring public. Legislation is sorely needed to help protect us and our families.
Insurers are responsible for indemnifying insureds after a loss. That basically means that consumers pay premiums, and in the event of a crash, the insurer covers the cost of repairs. Coverage includes the right to a safe and proper repair. Since so many insurance companies are competing for business, it is impractical to reap profits from raising premiums. Profits must instead come from continuing to market and sell policies at discount premiums, only to cheat customers by paying less on claims.