Court: Ohio Consumer Laws Don’t Apply to Insurance Estimates

December 31, 2015

The Ohio Supreme Court has ruled that laws protecting consumers from deceptive practices don’t apply to insurance company repair estimates.

The court made that ruling on Dec. 29 in the case involving a Columbus insurer, voting 5-2 to overturn a lower court ruling that said an insurance company providing a repair estimate constituted a “consumer transaction.”

The case involved a couple who sued Farmers Insurance Co. in a dispute over the use of original manufacturer parts or cheaper non-original parts in the repair of their 2-year-old car.

The court’s written ruling said that a 1990 law applicable in the case specifically exempts dealings between insurers and customers from the definition of a consumer transaction.

The couple had successfully sued using the Ohio Consumer Sales Practices Act.

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