Louisiana Attorney General Files Suit Against State Farm
According to the suit filed by Louisiana Attorney General Buddy Caldwell's office, he doesn't think State Farm is being that good of a neighbor. In fact the documents filed by the Attorney General's office suggests that State Farm is fostering a culture of unsafe business practices across the state.
Randy Ishee, Assistant A-G told the Louisiana Radio Network that State Farm's business practices force repair shops to use substandard parts for automobile repairs by only allowing a certain amount of funds to cover the cost of the repair.
"They're getting a cheaper repair, and in some cases, when they're not getting enough money because the insurance company doesn't want to pay the bill, they have to cut corners."
As you might imagine, State Farm has taken exception to the allegations and says the Attorney General's claims do not reflect an accurate impression of what the company provides for its customers.
Still the A-G's office maintains that while the company might be providing what they feel is adequate compensation for repairs, they do not appear to be providing for those repairs in the spirit in which most of their customers are lead to believe.
Assistant A-G Ishee explains how his office believes State Farm is skirting the issue.
"We call them knockoff parts and junkyard parts that are being used for these repairs,it has made the automobiles very unsafe to be on the street and the customer is not getting what they paid for."
State Farm is currently the largest insurer of automobiles in the state of Louisiana.