US: States put pressure on car insurers

Louisiana became the sixth state on Tuesday to sue various car insurers for antitrust allegations regarding the way the insurers treat auto body shops, according to reports.

Dozens of shops are listed in Louisiana’s suit, reports say, and several more are expected to join. The shops argue that car insurers have forced rate suppressions and other anticompetitive behavior on the businesses.

According to a representative for the Louisiana shops, insurers are “much more blatant in their statements to shop owners about what they will or will not pay and why” compared with other states.

Florida, Tennessee, Mississippi, Indiana and Utah have also filed lawsuits against insurers for similar claims.

Some experts predict 35 additional states to join in on the litigation, though the cases have hit delays due to a judicial panel hearing slated for the end of the month that will determine whether the lawsuits should be consolidated or not.

Full content: Body Shop Business

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