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Thursday, November 19, 2009
Connecticut Court Agrees Hartford Engaged in Unfair Practices

Big news out of the Connecticut Court system. A Stamford Superior Court jury found that the Hartford Insurance Co. engaged in unfair business practices by suppressing labor rates. The suit was filed by the Auto Body Association of Connecticut, claiming the group had been subject to such practices by Hartford. According to Body Shop Business, "the jury agreed that The Hartford artificially suppressed body shop labor rates by eliminating the use of independent appraisers and relying exclusively on its own automobile service representatives to perform appraisals so the company could control their content, including labor rates. The result: consumers did not get fair, independent appraisals of the damage to their automobiles, ABAC says."

What do you think? I know shops in Connecticut aren't the only ones exposed to this kind of activity. What's your opinion on this matter? Are there any organizations or associations you know of in your state that are preparing to take similar action? Sound off with your thoughts.

 

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2 comment(s) for “Connecticut Court Agrees Hartford Engaged in Unfair Practices”

  1. Gravatar of John Jorges
    John Jorges Says:
    So what else is new? Most companies steer in NJ. They use 'guarantee' and simplicity as tools to get the insured into the DRP. Watch a Progerssive commercial. That's right on TV that they "streamline the repair process", by sending you to their shop. Geico advertises it now too. The Allstate actor mentions it too. It's rampant and lightly disguised. But it's there
  2. Gravatar of Eric Seidel
    Eric Seidel Says:
    I agree John. This is not new, but having a court ruling is something that can be used for other legal fights. I give a lot of credit to those shops who are fighting the fight!

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