The Rhode Island Department of Business Regulation (DBR) fined Allstate Insurance Co. $5,000 for violating a state law that allows consumers to select where they have their vehicle repaired. The law prohibits insurance companies from “interfering with the insured’s or claimant’s free choice of repair facility.”.
Dennis D’Ambra informed an Allstate claim representative that he wanted repair work to his car done at Providence Auto Body, where he took his car after he was involved in an auto accident with an Allstate insured. DBR said the Allstate rep told D’Ambra that the repair shop was not approved, and did not inform D’Ambra of his right to select the body shop of his choice.
Instead, the rep tried to influence D’Ambra to take his car to an Allstate direct repair program (DRP) shop, saying the process would be faster. DBR also said that Allstate delayed the appraisal and repair work at Providence Auto Body by 22 days. DBR said Allstate did not offer a good explanation for the delay.
D’Ambra became so frustrated that he had his own insurance company, GMAC, pay for the repairs and get reimbursed by Allstate.
Allstate argued it didn’t break the law because it never recommended a specific shop for the repairs.
DBR said the law prohibits insurance companies from interfering with a consumer’s choice, and “Allstate took a number of actions which made it much more difficult for D’Ambra to have his vehicle repaired” at Providence Auto Body, which filed the complaint on his behalf.
Allstate has until Dec. 20 to appeal the decision.
