TDI Bulletin Highlights Consumer Rights when Filing Auto Insurance Claims

In its ongoing effort to promote a healthy and honest Texas auto insurance environment for consumers, the Texas Department of Insurance recently issued a bulletin to insurance companies reminding them of their responsibilities to claimants in the realms of payment for damage and selection of an auto body repair shop.

The Commissioner’s Bulletin references Section 1952.301 of the Texas Insurance Code (TIC) which states that, after a claim is made, insurers can’t limit coverage by:

  1. Specifying the brand, type, kind, age, vendor, supplier, or condition of parts or products that may be used to repair the vehicle; or
  1. Limiting the beneficiary of the policy from selecting a repair person or facility to repair damage to the vehicle.

Put bluntly, insurance providers CAN’T tell you what parts to use when fixing a damaged auto, nor can they tell you where to get it fixed. If they do, they are in breach of the TIC and should be reported to the Texas Department of Insurance.

The bulletin goes on to spell out some of the other responsibilities insurers have to their customers reiterating that a “fair and equitable” settlement of claims based on good faith should always applied.

“Unlike the big box and online discount insurance providers, Dagley Insurance and Financial Services in Katy, Texas provides personal service to all of our clients,” says Nathan Dagley, owner of Dagley Insurance. “We are not in the business of just selling a policy, we engage with our clients to understand specific needs before initiating the best coverage, a policy tailored to meet specific situations and requirements. As a result, we can effectively advocate for them in the unfortunate event of a loss. Our goal is to establish long-term relationships with our clients and the only way to do that is to make certain that they receive the best coverage and service. It’s the Dagley way.”

We encourage all customers to review their Texas Insurance policies, especially when a claim is made to ensure you’re not being left with shoddy aftermarket auto parts or unfair claims settlements. Of course, the safer bet is finding an insurance agent you can trust.

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