The Oregon Senate is considering a bill that would distance insurers – both figuratively and literally – from the repair
process, lessening their influence on repair costs.
S.B. 617, backed by Oregonians for Safe Auto
Repair (OSAR), states that insurers and other third
parties financially responsible for paying for repairs to a consumer’s
vehicle would not be allowed to:
• enter into a contract, either verbal or written, with a repair shop;
• influence, direct or suggest how the shop repairs a vehicle, including the cost of repairs; or
• maintain an office, desk, cubicle or space within 100 feet of the premises where the consumer's vehicle is being repaired.
The new law would be placed under the jurisdiction of the Oregon
Department of Justice’s Unfair Trade Practices Act. OSAR hopes this
would “level the playing field" for shops and consumers by allowing
shops to lodge complaints against insurers for violation of the law.
Like most departments of insurance across the U.S., the Oregon Insurance Department says it does not get involved in business disputes between collision repair facilities and insurance companies and only accepts complaints from consumers.
The bill was slated to be heard by the Senate Consumer Protection Committee on March 17.