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Collision course; Private repair shops want ban on insurer-owned shops.

Publication: Crain's Detroit Business
Publication Date: 01-MAR-04 		Format: Online - approximately 905 words
Delivery: Immediate Online Access

Article Excerpt
Byline: Amy Lane

Michael Auger has lost as much as 40 percent of his Clawson auto-repair shop's business in the past couple of years, and says he knows where the work has gone: to repair centers owned by The Allstate Corp.

This week in Lansing, he and other repair-shop owners are looking for some help.

Body shops and small-business and consumer groups are going up against insurance companies over a bill that would prohibit insurers from owning repair businesses. While applicable to any auto insurer, Senate Bill 819 targets what appears to be the only such Michigan situation: Allstate and its four Southeast Michigan Sterling Autobody Centers.

Repair shops say they're concerned about the precedent set by Allstate's May 2001 purchase of Sterling Collision Centers Inc. and the corresponding Allstate-covered work they've lost. They...

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