Rhode Island Insurance Adjuster Exam 2025 – Complete Study Guide

Steering in insurance terms specifically refers to the practice of directing an insured to a particular repair shop. This is often seen in auto insurance situations where an adjuster or insurance company may recommend specific shops for repairs. The rationale behind this can include agreements with the repair shops to provide services at a reduced rate, ensuring quality control, or streamlining the claims process for efficiency.

This practice has legal and ethical implications, as it can sometimes limit the insured's choice or lead to conflicts of interest. Insured parties often have the right to choose their repair facilities, and transparent communication regarding these recommendations is crucial to maintain trust and adherence to ethical guidelines in the insurance industry. Understanding this concept is essential for adjusters as they navigate claims and ensure compliance with industry standards and regulations.