When it comes to filing an insurance claim, most people assume that their insurance company has their best interests at heart. However, this is not always the case. Insurance steering is a practice that some insurance companies use to influence their policyholders into using certain service providers. This practice can lead to higher costs, lower quality services, and unnecessary delays in getting your claim settled. In this article, we will explore what insurance steering is, why it is used, and how you can protect yourself from falling victim to it.
What is Insurance Steering?
Insurance steering is a practice used by some insurance companies to direct policyholders to specific service providers, such as auto repair shops, contractors, or medical providers. This practice is often done in an effort to save the insurance company money, by choosing providers who have agreed to provide services at lower rates in exchange for a steady stream of business. Insurance steering can also be done to save time, by choosing providers who have pre-existing relationships with the insurance company and are familiar with their processes.
Why is Insurance Steering Used?
Insurance companies use steering to control costs, and increase profits. By directing policyholders to specific providers, they can negotiate lower rates and better terms with those providers, which can save them money. By directing policyholders to specific providers, they only benefit themselves, and often at your expense.
How to Avoid Insurance Steering?
There are several ways to protect yourself from falling victim to insurance steering:
- Choose your own service provider – You have the right to choose your own service provider. If your insurance company tries to steer you towards a specific provider, politely decline and choose your own provider.
- Research your service provider – Before choosing a service provider, do your own research. Check online reviews and ratings to see what others have to say about their experiences with that provider.
- Ask for multiple quotes – Get quotes from multiple service providers before choosing one. This will help you compare prices and ensure that you are getting a fair deal.
- Ask questions – Ask your insurance company questions about why they are recommending a specific provider. If their answer does not satisfy you, choose your own provider.
- Report any suspicious activity – If you suspect that your insurance company is engaging in steering, report it to your state insurance department.
FAQs:
Q: Is insurance steering legal?
A: Many states have laws in place that prohibit steering, while others have regulations that limit its use.
Q: Can I sue my insurance company for steering?
A: If you believe that your insurance company has steered you towards a specific service provider and you have suffered harm as a result, you may be able to sue them for damages. However, proving that steering was the cause of your harm can be difficult.
Q: How do insurance companies benefit from steering?
A: Insurance companies benefit from steering by negotiating lower rates and better terms with pre-approved service providers, reducing their risk exposure, and improving their profit margin.
Conclusion:
Insurance steering is a practice that can lead to serious safety concerns, higher costs, lower quality services, and unnecessary delays in getting your claim settled. By understanding what insurance steering is, why it is used, and how to protect yourself from it, you can ensure that you are getting the best possible service at a fair price.
Remember, you have the right to choose your own service provider and to ask questions about why your insurance company is recommending a specific provider. If you suspect that your insurance company is engaging in steering, report it to your state insurance department.
In conclusion, insurance steering is a practice that should be avoided at all costs. By being informed and proactive, you can protect yourself from falling victim to this practice and ensure that you are getting the best possible service for your insurance needs.
Ground Zero Collision has absolutely NO PARTNERSHIPS with any insurance company. We serve only you. If you have any questions about insurance steering, please feel free to contact us directly.
