Auto Body Association of Connecticut

67 Church Street � Greenwich, CT  06830 � Phone / Fax (866) 724-4222

                                                                www.abaconn.com

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For Immediate Release

�DON�T LET UNSAFE CARS BACK ON THE ROAD,� SHOP OWNERS SAY

HARTFORD, Conn., Jan. 17, 2008- The Auto Body Association of Connecticut (ABAC) today urged support for stronger anti-steering laws, noting the state Insurance Department has done little to protect consumers from coercive auto insurance company practices.

The organization of statewide auto body repair shops called on the legislature to adopt new consumer protection legislation as proposed today by Attorney General Richard Blumenthal.  Blumenthal�s proposal is stronger than a bill approved in Committee during the last session of the Legislature.  The bill was about to be called for a vote in the full General Assembly when the session ended.

During a press conference today at Denya�s Auto Body in Meriden, Blumenthal announced his call to the legislature to strengthen Connecticut�s anti-steering laws because existing laws are too easily skirted or ignored by auto insurance companies and even the State Insurance Department.

Steering, an illegal practice, occurs when an insurance company tells a consumer what body shop to use for repairs following an accident.  Insurance companies regularly try to ignore weak existing regulations by suggesting, for example, that repairs will take longer if a consumer goes anywhere other than to the company�s �preferred� shop.

�Your car, your choice � ought to be the watchword in auto repair,� Blumenthal said.  �Consumers deserve to choose where a car is repaired. No insurer should straightjacket or corral consumers, forcing them to use a so-called preferred shop. This legislation, which I have advocated for years, would preserve consumer choice and industry competition � deterring anticompetitive relationships between certain insurers and auto repairers.�

Blumenthal cited the example of 25-year old Lyn Moreau, a student at Southern Connecticut State University, who has been at odds with Progressive Insurance since an accident in September.

An independent review of the repairs deemed appropriate by Progressive shows the car was returned to Moreau in a condition unsafe to drive.

Speaking at the press conference today, Moreau, 25, said that after her accident, Progressive urged her to bring the damaged car to the firm�s so-called �concierge� center, claiming they would guarantee all repairs.

When the car was returned to her, allegedly completely repaired, she was not happy with the new paint and took the car to an independent shop for a re-inspection.  The re-inspection found the car had been so poorly repaired it was not safe to drive.

Blumenthal, a Democrat, was joined in his call for legislative action by State Sen. Leonard A. Fasano, a Republican, who said, �It is clear we can no longer rely on existing laws to protect consumers following an auto accident.  Consumer protection is a bipartisan issue.  It�s time to make our laws stronger so people like Lyn Moreau will no longer be at the mercy of the insurance giants.�

�All consumers have the right to take their cars to the body shops of their choice,� said Thomas Bivona, President of ABAC.  �Insurance company concierge programs take away consumer rights by not allowing them to have a say in where a car is repaired.  The shops chosen by these concierge centers answer to the insurance company, not the consumer and that can only result in disputes.�

�We see problems like Lyn�s every day.  It�s time for the legislature to say, �enough is enough� and vote in favor of Attorney General Blumenthal�s proposed legislation,� Bivona added.

He cited several examples of steering: Insurance company representatives sometimes tell consumers that there will be significant out-of-pocket costs if the car is repaired at a shop other than the �preferred shop.�  Another common tactic is for consumers to be told that if they have a car fixed at the shop of their choice, the insurance company could require an additional two weeks or more, just for an appraiser to determine the extent of the damage.

�The Auto Body Association of Connecticut would like to applaud the Atty. General Blumenthal for this important legislative proposal,� Bivona said.  �Steering has been against the law in Connecticut since the Weicker administration yet it is the daily practice of many major auto insurance companies.�

�Too often, consumers are unaware that insurance companies direct work to preferred shops because those shops may cut corners on the repair job, perhaps using inferior parts, aftermarket parts that have never been safety tested, or they may even install used parts,� Bivona added.  �We can no longer allow potentially unsafe cars back onto our streets and highways.�