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Title 18, Section 602 of the Delaware Insurance Code prohibits auto insurance companies or adjusters from requiring "that repairs be made in a specified repair shop". (The complete Delaware regulation can be found here.) Insurance companies negotiate agreements with body shops in each geographic area to perform work at reduced rates. Those shops must agree to the insurer's requirements, which often include the use of non-OEM parts, pre-set limits on time and materials, and numerous other restrictions. While insurance companies refer to those shops as "able to meet our standards", the agreements are in put place to reduce the insurer's costs — not to benefit the insured! |
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