Dozens of auto insurers are facing a federal lawsuit brought in U.S. District Court for the Middle District of Florida in Orlando by hundreds of auto shops in 36 states alleging the insurance industry forces unfair, illegal and unsafe auto repairs for consumers in order to reduce expenses.
Insurance industry representatives insist they are doing nothing wrong, and say they are simply trying to save on repair costs, which in turn keeps customers’ premiums at a reasonable level.
But according to the 92-page complaint, insurers insist that auto repair shops use replacement parts that are off-brand, after-market, used, recycled or, in some cases, even counterfeit, on any repairs made. Of course, this does keep costs down. The concern, however, is that those parts won’t provide the same degree of protection as manufacturer replacements. Beyond that, customers usually have no idea the parts used may be substandard.