State Farm Insurance Claim Department Phone Number

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State Farm Insurance Claim Department Phone Number – State Farm told the Kansas Department of Insurance last month that it instructs third-party claimants to get an estimate from a select service repairer, but the claimant is not obligated to use that repairer.

An Illinois attorney also reported hearing Wednesday from third-party claimants who were told to seek estimates on State Farm’s network of direct repair programs.

State Farm Insurance Claim Department Phone Number

“It was raised here in the Chicago area as well,” said attorney Patrick McGuire, who includes practicing collision repairers. (Note: Nothing in this article is intended to be legal advice. Please consult a qualified attorney in your state.)

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In addition to obvious steering concerns, such events impose nonexistent contractual obligations on third-party claimants. Unlike first-party drivers, who have a contractual relationship with an insurer, third-parties generally do not have bargaining rights.

It’s bad enough for third-party claimants to suffer an assessment by an unsatisfied shop. But such initiative can be extended if the insurance agent or third-party claimant mistakenly believes that the original repair must be performed at a TDD facility. This will certainly violate the laws regarding the selection of shops across the country.

“When a claimant wants to secure a vehicle repair, we offer our Select Service Program as the first option if we have a select service repairer in the claimant’s geographic location,” State Farm ILR Auto Manager Jeff Avery said. Wrote the Kansas Department of Insurance on April 15. Responding to common complaints. “We direct these repairers to get an initial estimate for the repairs. Once we have an estimate we will issue the payment. The customer has no obligation to use this repairer. Customers can use their claim payment as they see fit, including deciding where to have their vehicle repaired. …

“If a customer drops off their vehicle at a pre-selected repairer, we work directly with the repairer to get the agreed-upon repair amount.”

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“As previously noted, there is no known legislation that addresses your concerns regarding specific repair shops,” Kansas Department of Insurance Consumer Assistance Supervisor Karen Wallace told Tony Adams on April 24. wrote to, vice president of the Kansas Auto Body Association. Adams submitted a general inquiry about possible law changes as a result of State Farm’s response.

“It appears from the response that State Farm wants people to use specific shops for estimates but does not require those shops to be used for repairs,” Wallace continued.

We asked State Farm several questions about reports from Kansas, Illinois and North Carolina about changed third-party claim behavior:

These included State Farm’s official policy on third-party claimants, a possible source for the interpretation that a new requirement exists, state filing requirements to change the treatment of third-party claimants, why State Farm’s obligations on third parties could be imposed, and how the claim worked when the third-party claimant had a first-party state farm policy.

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“Thank you for reaching out,” State Farm senior public affairs specialist Tammy Estes wrote on April 28. “We have nothing to share with RDN.”

Adams said he had inquired about State Farm’s third-party behavior from KABA members and had experienced a similar situation in his own store.

Adams said a State Farm representative insisted that a longtime Weaver customer — a third-party claimant — needed to take his vehicle to a TDD shop for repairs. Eventually, Adams’ shop called a State Farm supervisor, who immediately confirmed that the customer had the right to have his vehicle repaired anywhere, Adams said. Keep the key.

Adams said it was a simple mistake on the employee’s part, but now he thinks the incident was part of something bigger.

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In Illinois, “the third-party claimant has no liability,” McGuire said. According to McGuire, they can even repair the car and have a bill in hand before taking the incident to a first-party claimant.

An insurer’s policyholder filing as a third-party claimant will also not be obligated to use the terms of its first-party contract, according to McGuire. The consumer can choose whether to face damages as a first or third party claimant.

But while there may be advantages for victims to file a first-party claim in a general damages case, “you’re at least in a better position as the first party,” according to McGuire.

A third-party claimant would likely have zero obligation to take the vehicle to get an estimate at the insurer’s location of choice, “even if they share the same insurance company,” Eversman said.

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The claimant would be an adverse third party, and “the insurer has no right to exercise any action against the third party” unless language in the first-party agreement required the consumer to sacrifice the third-party’s rights as well, he said.

Erica Eversman, a lawyer for Automotive Information Services, said she was not familiar with the Kansas law but doubted any insurance commissioner would allow a carrier to make such a claim on a policy.

Allowing an insured to participate in the repair process can eliminate the need for a third-party claimant to sue the policyholder to complete. But that doesn’t mean the insurer has any right to control the process, according to Eversman.

“As a general rule,” Eversman said, third parties have no obligation to insure — “period.” It would be “inappropriate” for an insurer to attempt such a ruling, he said.

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State Farm did not respond to requests for comment Friday on Illinois’ alleged and carrier training for adjusters, preferred service shops and an outsourced estimate (such as an AI, a desk reviewer or an independent appraiser) of third-party written discrepancies. . . and first party passengers.

“Some states have laws that prohibit an insurer from driving an unreasonable distance from a first or third-party claimant or establish other guidelines for vehicle inspections,” said APCIA Vice President for Auto Policy and Claims, Bob Passmore. said in a statement. “However, in most cases the claimant and the insurer are able to work together to find the most efficient and effective way to inspect the vehicle, assess the damage and settle the claim payment.”

According to Eversman, insurers can also commit insurance fraud by understating claims. He suggested that if the insurer used a body shop as an agent, the repairer “could be held liable for insurance fraud and underpayment of claims.”

Eversman cited the problem of using a third party with a potential interest in the claim to write the estimate “in favor of the insurance company” and explained that the shop may write a higher estimate after the claim is seized. It’s the DRP repairer’s “whole game” to write an estimate, he noted.

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It was an “incredible conflict of interest” to hire a body shop to outsource the claim, when the TDD shop had a “clear objective” to take over the repairs, he argued.

Eversman said it would be one thing if the TDD shop did a “good overall initial repair analysis without catastrophic activity,” but he clarified that estimate without the need to disaggregate it to accurately determine claim amounts. was done It had to be clear – “in writing, in courage” – that it was “the most accurate estimate that could be made” without overdoing it.

“It would be a different story,” Eversman said. However, it may not close the store or eliminate the conflict of interest, he said.

We suggested that if the insurer-organized appraisal shop began to remove the components, the situation would be repaired and the shop would risk violating the election law, and Eversman agreed.

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We asked the Kansas Department of Insurance if it has taken any other action on the matter or if the state has given any other guidance to the farm. We also questioned the apparent lack of responsibility for the third-party claimant to obtain the state farm’s required assessment.

“While users are welcome to share their personal information with whomever they wish, we do not comment on specific cases,” the agency’s Le Modestatt wrote in an April 29 email. The general complaints process is to work with both insurance companies. and insured when we receive a complaint to gather all relevant information from the parties involved and ensure that matters are handled in accordance with Kansas laws and regulations.

Since they were unable to discuss the specific complaint, we then asked about Kansas’ general laws and regulations regarding third-party claimants.

In temporary property damage actions, Kansas courts will look to PIK Civ. 4th 171.21, which says,

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“When real property is temporarily damaged and of such a nature that the property can be restored to its original condition, the measure of damage shall be the reasonable cost of repairs necessary to restore it to its original condition, [ In addition, a reasonable amount such as compensation for

While the property is being repaired with reasonable diligence], but not more than its fair and reasonable market value before the injury.

This is consistent with the purpose of tort actions, ie. To complete the injured party again, while avoiding the windfall for the injured party. In reducing labor costs, the mechanical determination of losses is taken into account at the same rate of cost.

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