The Texas insurance commissioner recently released a bulletin indicating his department's concern that some insurers in the state may be directly or indirectly limiting policyholder's coverage through violations of state insurance law.
Although the bulletin is directed toward insurers in the state, OnlineAutoInsurance.com advises drivers who have purchased auto insurance in Texas (http://www.onlineautoinsurance.com/texas) to make sure that, in the event of an accident that requires automotive repairs, the insurer does not overstep its bounds in the ways pinpointed by the department. According to the bulletin, the department is concerned that insurers may be making specifications about the type or condition of products used to repair a vehicle, and that insurance providers may be limiting customers' ability to select the repair person or facility making repairs to a damaged vehicle.
The bulletin goes on to state, "The Department is also concerned that setting reimbursement rates artificially low for specific motor vehicle repairs and parts that are used to make the repairs may lead to substandard repairs, which may also impact the warranty on a vehicle."
Consumers need to be extremely aware of the details of policies purchased from insurers and of the choices that are afforded to the consumer by those details. For instance, policyholders should review a policy to check for clauses related to OEM parts. OEM parts are those that are made by the original equipment manufacturer, and an insurer may be authorized under a policy to specify the use of less-expensive, non-OEM - also known as "after-market" - parts. If this is the case, a consumer may have the option of paying the cost difference to ensure that no after-market parts are used in the repair of the insured auto.
Consumers in the Lone Star State wishing to learn more about auto insurance can visit http://www.onlineautoinsurance.com/texas/, where there are numerous articles about Texas insurance.
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Read the full story at http://www.prweb.com/releases/2010/08/prweb4362964.htm.