A lawsuit over alleged steering between a Maryland collision repair center and State Farm Insurance has been settled weeks after the judge ordered State Farm to provide records of its communications with policyholders.
In a case that may have implications for the auto glass industry, Total Recon Auto Center filed suit against State Farm in August of 2023, alleging the insurer deliberately misled policyholders to “improperly steer” them away from the shop.
The center is a Tesla-certified collision repair and recalibration company in Montgomery County, Maryland. According to Total Recon’s initial complaint, it is “one of the few independent collision centers” in its market and isn’t part of any insurance network or referral agreements.
Total Recon alleged that State Farm “launch[ed] an international campaign to harm Total Recon,” including spreading “harmful misinformation” to policyholders who were considering using the center for their vehicle repairs.
The repair center alleges that State Farm told potential customers that Total Recon charges out-of-pocket expenses, that it is out of the insurer’s network, and that “if you choose a shop in our network, it is guaranteed not to have any out-of-pocket costs stemming from this claim.”
“These statements were knowingly false, as State Farm had agreed it would pay the Tesla Labor Rate to Total Recon so that there would be no out-of-pocket costs associated with Total Recon’s customers,” the complaint says.
Total Recon’s complaint listed seven potential customers it claimed State Farm had convinced or attempted to convince not to use the center’s services. One of the customers had already made an appointment with Total Recon and then cancelled after speaking with State Farm, the legal document alleges.
State Farm moved to dismiss the suit a few months later, claiming Total Recon “fail[ed] to state a claim upon which relief can be granted and failure to meet the required pleading standards.” The United States District Court for the District of Maryland denied the motion.
In May 2025, the court issued an order to compel State Farm to provide certain information, including emails and non-privileged phone call audio recordings between State Farm and Total Recon’s potential customers, as well as the script State Farm representatives use when speaking to policyholders.
About a month after that court order, the parties filed a motion to stay discovery and enter mediation proceedings. Court records say they agreed on a settlement during that mediation on July 23, and Judge Lydia Kay Griggsby signed State Farm’s stipulation of voluntary dismissal with prejudice on Oct. 28.
The terms of the settlement have not been made public yet.
WOW, THE SAME THING SOME NETWORKS SAY ABOUT GLASS SHOPS EVERYDAY.
MISSED INFORMATION & STEERING SEEM TO GO HAND IN HAND WITH NETWORKS RELATING TO AUTO GLASS SHOPS. ITS A SHAME THAT IT HAS GOTTEN OUT OF CONTROL. STATE FARM IS NOT THE ONLY VIOLATOR OF THESE NOT RIGHT PRACTICES. WE HEAR THE SAME ISSUES FROM OUR CUSTOMERS NOW THAT SAFELITE IS IN TOTAL CONTROL OF EVERY INSURANCE THERE IS. NOT VERY FAIR FOR US LIL PEOPLE WHO RELY ON THESE JOBS TO SURVIVE.