This week, car insurance companies will be legally required to inform South Australian motorists if they can choose where to have their vehicle repaired.

“Until now local motorists have been surprised to learn their vehicle insurance might not allow them to choose their local or preferred repairer,” Motor Trade Association CEO Darrell Jacobs said.

“This has been a major frustration for South Australians forced to travel across town or accept substandard repairs which compromise their vehicle’s safety or resale value.”

Under new State Government regulations, insurers will be required to inform policyholders whether their vehicle insurance product allows for choice of repairer.

The mandatory framework also forces insurers to advise policyholders if the company has a financial or contractual relationship with a repairer they may be referred to during a claims process.

“Motorists have the right to know where they can get their vehicle repaired. There’s no point forcing somebody to use a repairer in Glenunga when they live in Noarlunga,” Mr Jacobs said.

There are approximately 120,000 vehicle insurance claims each year in South Australia.

The new positive obligation will arise when motorists take out a new insurance policy, when they renew their existing policy, as well as during the claims process.

The MTA strongly lobbied both major South Australian parties as well as all minor parties and independents to secure passage of the legislation.