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Louisiana Attorney General Files Lawsuit Against State Farm Auto Insurance

Katrina Damage May Bring A Record $26 Billion In Insurance Claims
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Louisiana Attorney General Buddy Caldwell filed a lawsuit on Tuesday (8-19) against State Farm Insurance, alleging Louisiana’s largest auto insurer is illegally steering customers involved in car accidents to repair shops that use junkyard parts and choose cheap fixes over safety.

The lawsuit, filed in state district court in Baton Rouge, accused the insurance company of violating Louisiana’s unfair trade practices act with a systematic effort to lower its costs at the expense of its customers.

“State Farm has created a culture of unsafe business practices in which consumer vehicle repairs are performed with cost-savings as the primary goal rather than safety and reliability,” Caldwell said.

State Farms’ Public Affairs Director Phil Supple issued the following statement in response to the lawsuit: “The description in this lawsuit is not in line with State Farm’s mission to serve the needs of its customers, and our long, proud history of achievements in advancing vehicle safety. We are reviewing the lawsuit and will have more to share soon.”

{Claims Journal.com}

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