Anti-Steering Bill Introduced in California Assembly - BodyShop Business

Anti-Steering Bill Introduced in California Assembly

The California Assembly is considering a bill that would prohibit insurers from suggesting a specific repair shop unless the claimant expressly requests a referral or the claimant has been informed in writing of the right to select a repair shop.

A.B. 802 also states that if a claimant accepts the insurer’s recommendation, the insurer must send the claimant the following written notice within five days: “We are prohibited by law from requiring that repairs be done at a specific automotive repair dealer. You are entitled to select the auto body repair shop to repair damage covered by us. We have recommended an automotive repair dealer that will repair your damaged vehicle. If you agree to use our recommended automotive repair dealer, we will cause the damaged vehicle to be restored to its condition prior to the loss at no additional cost to you other than as stated in the insurance policy or as otherwise allowed by law. If you experience a problem with the repair of your vehicle, please contact us immediately for assistance.”

A hearing for the bill is slated for March 30.

Last year, Gov. Arnold Schwarzenegger vetoed S.B. 1167, an anti-steering bill that would have required insurers to ask policyholders if they’ve chosen a repair shop prior to suggesting one. The failed bill also stipulated that the insurance commissioner form a task force to study issues addressed by Insurance Code Section 758.5.

Currently, the California Department of Insurance is considering proposed additions to the state’s anti-steering regulation that would prevent an insurer from discussing DRPs or an alternative facility if the claimant informs the insurer that he or she has selected a specific repair facility. The rules would also prevent an insurer from raising questions about the quality of the repair facility selected by the claimant. Click HERE to read more.

You May Also Like

Auto Care Industry Expected to Grow 5.7% in 2024

The 2025 Auto Care Factbook projects the total light-, medium- and heavy-duty automotive aftermarket to hit $617.3 billion industry in 2027.

The Auto Care Association has released its 2025 Auto Care Factbook and 2025 Auto Care Factbook & Lang Annual, which indicates that, despite challenges such as persistent inflation, the aftermarket demonstrated resilience with total U.S. light duty aftermarket sales growing by 8.6% in 2023 to $392 billion — surpassing the previous year’s projections of 8.1%. Light vehicle growth in 2024 is expected to be at a robust 5.9%, with the total light, medium and heavy duty automotive aftermarket now expected to be a $617.3 billion industry in 2027. 

Association News

The latest association news appearing on bodyshopbusiness.com.

Consolidator Report

Consolidation news from the week of June 10.

Top 5 Stories of the Week

A recap of the top five stories on bodyshopbusiness.com during the week of June 10.

Collision Careers Enhances Web Presence, Debuts New Video

The updated website now includes career path details and downloadable resources for parents, educators and school advisors as well as a new, engaging video.

Other Posts

SUN Collision Brings Back Thank You Thursdays Sweepstakes

SUN Collision is celebrating Automotive Service Professionals Month in June with the return of its “Thank You Thursdays!” sweepstakes.

Snap-on TSS Onsite at SkillsUSA in Atlanta

Snap-on Total Shop Solutions (TSS) products will be on display and included in the competition at the 2024 SkillsUSA National Leadership and Skills Conference June 24-28 at the Georgia World Congress Center in Atlanta. Related Articles – NABC to Host Third Golf Fundraising Event of 2024 – Honda Starts Production on 2025 Honda CR-V Fuel

NABC to Host Third Golf Fundraising Event of 2024

The NABC Changing and Saving Lives Foundation will host the third golf fundraising event of 2024 Sept. 9 at Boone Valley Golf Club in Augusta, Mo.

Honda Starts Production on 2025 Honda CR-V Fuel Cell EV

The all-new CR-V e:FCEV is the first production hydrogen FCEV in the U.S. to combine an all-new U.S.-made fuel cell system with plug-in EV charging capability.