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CNN Exposes Auto Insurer Schemes

This 2015 featured investigation from CNN’s “AC360” with Anderson Cooper brings to light the fact that insurance companies are often times skimping on safety by using “recycled, remanufactured” and often “junk” parts to repair your car – and pad their profits.

Excerpts from the segment:

Car repair shops say auto insurance companies are coercing them to use cheap parts and sometimes dangerous practices to fix vehicles involved in accidents.
“It is just not in the economic interest of the insurer to have a car go in and out of an auto body shop three or four times to get it right,” said Alldredge. “And so the notion that somehow this is meant to … do shoddy work or to encourage the idea that we have to get it done quickly and move on to the next one really isn’t in the insurance company’s economic interest.”
“The insurance company may provide a list of auto body shops, and the customer can say, ‘No. I wanna go to Joe’s Body Shop around the corner.’ And that’s their choice. The issue of steering is already something that’s not consistent with state law and not something that insurance companies do,” he said.




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