Tighter steering in Conn.

Connecticut Attorney General Richard Blumenthal has drafted legislation that he says would strengthen the state’s anti-steering law prohibiting insurers from forcing consumers to use a preferred auto repair shop as a condition of paying for the repair.

Blumenthal announced the legislation with leaders of the Auto Body Association of Connecticut who say steering by insurers — stifling fair competition — remains rampant in the industry.

According to Blumenthal, insurers now use various methods to “skirt” the anti-steering law, “including providing consumers with a preferred list of repairers, intimating that other repairers may not guarantee their work, may charge consumers for some of the repairs or may not complete the repairs in a timely fashion.” He said some insurers provide for a reduced deductible if the consumer chooses a preferred facility.

Currently, insurers are already prohibited from requiring that consumers repair their vehicle at a specific shop but Blumenthal’s proposal would expand the prohibition to prevent insurers from using subtle coercion to steer consumers. It requires insurers to pay the reasonable and customary hourly rate that a consumer would typically pay for the repair — to the shop of the consumers’ choice.