ASA Ohio Asks Attorney General to Review State Farm Program
In October the Automotive Service Association of Ohio (ASA Ohio) publicly announced its opposition to State Farm’s new policy that would require automotive repair shops, participating in its Select Service program, to electronically order parts through PartsTrader LLC, a third party e-commerce software provider. State Farm is planning a nationwide rollout of the program by 2014. After contacting State Farm directly, with no response, ASA Ohio has sent a letter to Attorney General Mike DeWine asking his office to review the State Farm mandate to determine if it violates any state laws.
In its letter, ASA Ohio President Joe Sanfillipo III, explains that this new parts procurement requirement has the potential to destroy longstanding relationships between automotive repair professionals and their preferred part vendors. Additionally, any insurer-mandated parts ordering system gives the insurer even more influence over collision repair market pricing, which will cut into profits and take control away from the owners of automotive repair businesses in Ohio. The letter also states that ASA Ohio firmly believes that the most efficient method of ordering parts is in a free market system where repair professionals are able to order parts from trusted suppliers. State Farm’s attempt to influence this process will have a negative impact on Ohio’s automotive repair businesses and the customers they serve.
Upon the suggestion of Attorney General Mike DeWine’s office, ASA Ohio is also sending a letter to the Ohio Department of Insurance asking for a similar review of State Farm’s policy.
To view the full text of the letter to Attorney General Mike DeWine, please click here.
ASA Ohio is dedicated to representing the views of its members before Ohio’s elected officials. Through its presence at the Statehouse, ASA Ohio has helped advance policy measures as well as protect its members from unnecessary regulations that would negatively impact the automotive repair industry.