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Lawsuits claim car insurance industry running dangerous scheme

PITTSBURGH — Auto body shops across the country claim that big insurance companies have been skimping on repairs to pad their profits.

More than 500 auto body shops are suing dozens of insurance companies.

Shop owners believe that the insurance industry is involved in a scheme to send customers to pre-selected shops where the bare minimum is done to fix your car.

The lawsuits claim that insurers are even telling the shops to use used or recycled parts because they’re cheaper.

“The insurance company wants us to put this stuff on their cars. If we refuse to use the part, then they label us as a shop not willing to go along with their program, and they try to steer our business away from us,” Matt Parker of Parker Auto Body said.

One lawmaker believes that cars that are repaired through insurance companies also pose a safety risk. He has asked the U.S. Department of Justice to investigate.

WPXI

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