Who is the "customer or consumer" in a motor vehicle repair transaction paid by an insurance company?

Agency: State

In any repair transaction, the "customer" or "consumer" is always the owner or operator of the vehicle, not the insurance company or extended service contract company. This principle applies to certain aspects of an insurance-paid or extended service contract repair as follows:

  1. Authorization for diagnosis or repairs may be given only by the customer. Unless the insurance company or service contract company presents to the repair facility signed authorization from the customer to contract for repairs, no work may be started. Otherwise, the repair facility must actually give the customer a written estimate or obtain from the customer a signed waiver of estimate as provided in the law;
  2. For additional repairs costing more than 10% or $10 (whichever is less) beyond the original estimate, specific authorization--either written or oral--must be obtained by the repair facility from the customer. This is true even in cases where the customer had given the insurance company or extended service contract company signed authorization originally to contract for repairs, except where that authorization specifically allows the insurance company to approve additional work;
  3. The customer has the right to the return of replaced parts and the right to a detailed final bill. The customer may authorize the repair facility to dispose of replaced parts;
  4. No other rights and remedies of the customer under the law are altered.




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