That relationship is a little too cozy for Louisiana shop owner Matt Parker. Parker, the owner of Parker Auto Body in Monroe, La., announced in March that he was running for state insurance commissioner. In the October election, he'll face off against current commissioner Jim Donelon.
"We've been dealing with insurance companies for more than 30 years, and we've seen how unfairly policy holders are being treated in terms of the way they get their cars repaired," Parker told ABRN. "The only person who can change this is the insurance commissioner. Our current commissioner has taken more than $1 million from the insurance industry. How can you regulate an industry you're taking money from?"
Parker is one of the owners at the forefront of the lawsuit filed against insurance companies in Louisiana that was rolled into a national suit involving more than 500 shops across the country. The Louisiana attorney general filed suit against State Farm in 2014, alleging that the insurer encouraged the use of lesser quality replacement parts, among other unfair business practices. The suit was rolled into a larger anti-trust suit and moved to a district court in Florida, but it may be moved back to Louisiana because it was not originally filed as an anti-trust suit.
Parker will have an uphill battle. Both he and Donelon are Republicans. Donelon is a longtime state legislator and has served as commissioner since 2006. He also has more than $442,000 in his campaign war chest, according to recent campaign finance reports, while Parker has just $14,000.
But Parker has launched a fundraising initiative that he hopes can leverage body shop, homeowner, and consumer frustration with the insurance industry in the state.
"The difference between us is that I'm not going to take any money from the insurance companies," Parker says. "I'm going to regulate them and work for the people of this state.
"We have to raise money, that's our biggest challenge right now," Parker continued. "Our polls have been favorable, and if we can raise the money we have a real good shot at competing in this election."
The Louisiana insurance commissioner post has frequently been the center of controversy. Many property owners have had to fight for claims related to major hurricanes in the area, and three of Donelon's predecessors served jail time for corruption-related charges.
The Louisiana collision industry has been galvanized as of late, with the AG's lawsuit and the formation of the new Southeast Louisiana Collision Repair Association (SeLaCRA).
"The shops are behind us," Parker says. "If something is not done in the industry soon, we won't have independent body shops anymore, and consumers will see shoddy repairs and these low-cost parts the insurance companies want us to use."
Parker isn't just focusing on collision industry issues, though. He cited the high cost of homeowners' insurance and carrier reluctance to pay on claims as other important problems facing consumers in the state.
In 2013, the state-run insurer of last resort (Louisiana Citizens Property Insurance) settled a class-action lawsuit tied to improperly handled claims after Hurricanes Katrina and Rita in 2005. Citizens' most recent CEO, David Thomas, resigned abruptly earlier this month because of "personnel issues," according to Donelon's office.
"I'm trying to keep things simple and focus on the issues that affect everyone in this state," Parker says. "We pay almost double the national average for homeowners' insurance in Louisiana, and insurance companies are not treating policy holders fairly."
Parker is one of two body shop owners that have launched insurance commissioner campaigns across the country. In Mississippi, John Mosley, owner of Clinton Body Shop in Clinton, Miss., (and also a plaintiff in the national lawsuit) announced he was running against incumbent commissioner Mike Chaney.
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