A group of bodyshops in Florida, USA have come together to file an antitrust lawsuit against dozens of insurance companies including Sate Farm. They allege the insurers use their direct repair programs to “illegally control and depress” repair rates. They also say that customers are steered away if they do not comply with price demands.

The lawyers for A&E Auto Body Inc., the lead repair shop listed as plaintiff said, “Over the course of several years, the defendants have engaged in an ongoing, concerted and intentional course of action and conduct with State Farm acting as the spearhead to improperly and illegally control and depress automobile damage repair costs to the detriment of the plaintiffs and the substantial profit of the defendants.” He added, “Defendants, particularly State Farm, have engaged in an ongoing pattern and practice of coercion and implied threats to the pecuniary health of the individual plaintiff business in order to force compliance with unreasonable and onerous concessions. Failure to comply results in removal from programs, combined with improper ‘steering’ of customers away from the plaintiffs’ businesses.”

The bodyshops are seeking a jury trial and have asked for compensatory damages for all non-payment and underpayment of work, compensation for lost revenue through “artificial suppression of labour rates,” and damages to compensate for lost business opportunities, as well as costs. They also want the court to put a plan into effect that will force the insurers to stop steering.

This is the latest in a long line of legal disputes between US bodyshops and insurance companies. The practice of insurance steering has been outlawed in over half of US sates as it is seen as anti-competitive, while concerns have also be raised that repair costs are sometimes so low safety is being compromised.