A US insurer has sued insurance company State Farm for allegedly telling customers that the shop's work was substandard and steering them towards shops providing discounts.
According to a report from the Madison-St Clair Record, Classic Auto Body Inc. filed a compaint against State Farm Fire and Casualty Company alleging the insurer violated the Illinois consumer fraud and deceptive trade practices.
The business alleged that State Farm interfered with its business by telling customers that it did not guarantee the shop's work and that the work was substandard.
The repairer also claimed that the insurer steered customers to its preferred shops that provided discounts which caused it to suffer loss of customers and damage to its business reputation.
The news follows a previous lawsuit filed against State Farm which alleged that the company coerced a repair shop to use repair methods specified by the insurer including gluing instead of spot welding the roof of a vehicle which then caused the occupants to be trapped inside in a following collision