Total Recon Auto Center, a Rockville, Md., auto body shop, has filed suit against State Farm and Allstate over improperly steering customers to cheaper and less qualified repair shops in order to save themselves money.
Total Recon’s lawsuit accuses the insurers of leading an “intentional, malicious campaign” against the repair center, which is an independent Tesla-certified shop. At the core of the dispute is alleged “harmful misinformation” aimed at diverting Tesla owners to other shops willing to comply with the insurers’ preferred rates.
Per anti-steering laws in Maryland, after a wreck, consumers have the right to use any shop they want. But State Farm and Allstate have allegedly been “steering” their policyholders away from using Total Recon Auto Center.
State Farm allegedly sent a letter to customers acknowledging the customer’s right to choose the repair facility of their own choice, however, it then subtly warns of potential out-of-pocket costs at Total Recon, suggesting that the repair facility may charge more than what State Farm deems “reasonable.”
For Tesla owners, the right repair shop is paramount. Tesla vehicles, being semi-autonomous, require specific calibrations and parts replacements after accidents. Non-certified shops might not adhere to these standards, potentially compromising vehicle safety.
The lawsuit shines a light on State Farm’s alleged practice of emphasizing the benefits of choosing “in-network” shops. Insurers’ warnings about potential out-of-pocket costs can be misleading. Eduardo Garcia from Stein Sperling, the Rockville, Md., law firm handling the case, explains that in most scenarios, these costs are settled between the insurer and the repair shop. (Total Recon, for instance, has an agreement with State Farm to avoid charging customers out-of-pocket).
“This isn’t just a business dispute. It’s a loud wake-up call about consumers’ rights, safety, and the covert tactics that could be affecting your choices — and ultimately, your safety.”
