Affordable Cost of Living

MORE REGULATION FOR INSURANCE COMPANIES

Insurance companies have far too much leverage when home or auto claims are being settled. Under current legislation policy holders have the right to choose which auto body shop they will use to complete a repair. Once the shop is selected, the insurance company then visits the shop and "encourages" the cheapest possible repair, ideally using aftermarket parts and parts salvaged from other vehicles. Even in cases where an individual who caused the damage is responsible enough to say "I accept full responsibility and will pay for all damages" the insurance company refuses to deal with this third party. After a repair is completed according to the insurance company's instructions and requirements, if there is a deficiency with the repair, the insurance company absolves itself of any responsibility and takes the position that the dispute is between the policy holder and the auto body shop. Similar situations develop for homeowners policies. When a policy holder has lost the use of their home or automobile they are in a mildly desperate state. This state makes it far too easy for an insurance company to delay settlement to increase the policy holder's desperation and force a settlement that is more favourable to the insurance company.

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Idea No. 163