AUTO INSURANCE COMPANIES CAN'T ALSO OWN AUTO REPAIR SHOPS IN TEXAS

TRY drhowell.net SEARCH

The Supreme Court on Tuesday rejected Allstate Corp.'s challenge to a Texas law that restricts insurance company ownership of auto collision repair shops.

Allstate sought review of its case at the high court, arguing the Texas law violates the constitution. A federal appeals court has upheld the law, which bars Allstate from opening new collision repair shops.

The law, enacted in 2003, also restricts Allstate from participating in the business of 15 repair shops it owns in the state. Allstate purchased Sterling Collision Centers in 2001, a move that gave it nationwide entry into the automobile repair business.

The company has argued the law, which aims to protect smaller in-state collision repair companies from insurance industry competition, violates restrictions the Constitution places on state regulation of interstate commerce. [...]