Last week, the Michigan Senate Insurance Committee, chaired by Sen. Joe Hune (MI-22), held a hearing on Senate Bill 430, a bill to amend the insurance code to prohibit insurers from requiring automotive repairers to use a specific vendor or process to procure parts and other materials.
Dan Risley, Automotive Service Association (ASA) president/executive director, joined with Ray Fisher, ASA-Michigan president, to testify before the Insurance Committee in support of S.B. 430. They explained to the members that this legislation would benefit Michigan’s repairers by facilitating free market competition among parts providers and allowing shop owners to do business with vendors of their choice. In turn, this freedom would benefit consumers, small businesses and local communities.
“Insurance companies should not be mandating the use of a specific software, technology or vendor for purchasing parts,” Risley said. “Independent collision repairers should be able to choose the vendors with whom they would like to do business. Collision repairers have a vested interest in buying the highest quality part at a competitive price and choosing a vendor that can provide timely and efficient service and one that stands behind their product. That vested interest is the vehicle owner, their customer.”
Fisher added at the conclusion of the hearing, “This bill is common sense legislation and, when passed, will be a great victory for Michigan consumers as well as the automotive repair community at large. This situation is not unique to my state, and it is my hope that Michigan can serve as a model for repairers in other states facing this issue.”
To view ASA’s testimony for the hearing and send a support letter for S.B. 430, visit ASA’s legislative website at www.TakingTheHill.com.
