In Idaho, insurance steering laws are primarily regulated by consumer protection and unfair claims practices acts, which protect a vehicle owner's right to choose a repair shop. Insurers cannot force you to use a specific repair shop, and they must offer you a choice of at least two preferred repair shops if they use a preferred provider program. Additionally, for non-original manufacturer (non-OEM) parts, Idaho law requires that they are disclosed on the estimate before work begins.
Key laws and regulations
Right to choose a repair shop: Idaho law prohibits an insurer from steering a policyholder or claimant to a specific body shop.
Disclosure of non-OEM parts: You must be informed on the repair estimate if non-OEM parts will be used.
Unfair claims settlement practices: Idaho's Unfair Claims Settlement Practices Act further outlines prohibited actions by insurers, such as failing to act reasonably promptly on claims, refusing to pay claims without a reasonable investigation, or attempting to settle a claim for less than a reasonable amount.
Why insurance steering laws are necessary
To ensure quality repairs: Steering can lead to a compromise in repair quality, as preferred shops may be incentivized to cut costs to maintain their contract with the insurer.
To prevent unsafe practices: This can include using cheaper aftermarket parts instead of Original Equipment Manufacturer (OEM) parts, rushing repairs, or skipping procedures necessary for safety.
To protect consumer choice: You have the legal right to choose any repair shop you want, regardless of the insurer's recommendation.
To counter misleading tactics: Insurers may use deceptive statements, such as implying you will be responsible for additional costs or delays if you don't use their preferred shop, to steer you towards their network.
How insurers steer
Misleading information: Claiming that other shops are more expensive or will cause delays.
Guarantees: Stating that the insurer's preferred shop's work is guaranteed, but other shops' work is not (which is often false).
Contractual incentives: Steering works by sending a large volume of repair business to a preferred shop in exchange for discounted rates.
Intimidation: Using scare tactics to make consumers believe they have no other choice but to use the insurer's network.