RACV has announced it will be following suit with IAG, by offering an 'any repairer' option to it customers.
The company also stated that it will introduce a new 'mobility' benefit, which will give not-at-fault customers the use of a hire car following their accident.
RACV GM motor insurance Mark Geraghty said the changes were introduced to accommodate consumer demand.
"RACV is making changes to keep insurance affordable for Victorians. RACV is providing our members a choice as to where they can get repairs when their vehicle is damaged.
"Members can choose to have their vehicle repaired by our extensive network of partner repairers across Victoria.
"RACV members are also able to choose their own repairer outside of our network, if they have added the ‘Any Repairer’ option on their comprehensive motor insurance policy.
"This option can be selected at the time of renewing or purchasing a policy or mid-term as long as there is no unrepaired damage on the vehicle.
"In addition, members have told us that not having a car available after a crash is a huge inconvenience and disruption to their life. Therefore, RACV is introducing new ‘mobility’ benefits to ensure our members can get on with their normal life while their car is being repaired.
"The hire car benefit applies to not-at-fault customers who’ve been in a collision and can provide us with the details of the at-fault driver.
Geraghty also outlined the procedure for applying the option for new and existing customers.
"From 15 October, new RACV customers will have the chance to add on a new ‘Any Repairer’ policy option when purchasing a new comprehensive motor insurance policy.
"This means if new members would like to have their vehicle repaired outside of RACV’s Partner Repairers, they will need to add the ‘Any Repairer’ option for an additional premium. For existing members, they will need to add the ‘Any Repairer’ option at their renewal, starting from 27 November 2017."
The new changes from both IAG and RACV continue to cause waves in the industry.
When Paint & Panel selected 'Any Repairer' to a new policy, under the fictional identity of a 30 year old male with a clean driving record, the premium jumped close to 14%.
VACC executive director Geoff Gwilym spoke to Paint & Panel in September about the VACC's concerns, stating they will be potentially disastrous for independent repairers and will leave consumers very much worse off.