Car insurance companies are now legally required to inform South Australian vehicle owners if their insurance product allows for choice of repairer. The obligation arises when motorists take out a new insurance policy, renew their existing policy, and during the claims process.
Under the mandatory framework, policyholders must also be advised during the claims process if an insurer has a financial or contractual relationship with a referred repairer.
“Until now, local motorists have been surprised to learn their vehicle insurance might not allow them to choose their local or preferred repairer,” said Darrell Jacobs, CEO of the Motor Trade Association SA / NT.
“This has been a major frustration for South Australians forced to travel across town or accept substandard repairs, which compromise their vehicle’s safety or resale value.”
The MTA SA / NT says it strongly lobbied both major South Australian political parties as well as all minor parties and independents to secure passage of the legislation.