California Repairers Unhappy with Amended Anti-Steering Bill - BodyShop Business

California Repairers Unhappy with Amended Anti-Steering Bill

California A.B. 1200, a widely debated bill that would alter the state’s anti-steering code, was amended  ahead of a public hearing for the bill slated for July 1. As amended, the bill would authorize insurers, during the claims process, to provide claimants with specific “truthful and nondeceptive information regarding services and benefits available” to them.

The amended version of A.B. 1200 eliminates the previously proposed wording, “Nothing in this section restricts the ability of an insurer to explain benefits the insurer provides as part of the claims process,” and adds several paragraphs to Section 758.5 of California’s insurance code, the anti-steering statute, outlining the need for claimants to be “informed” during the claims process.

Per the amendment, the following introduction would be added to the anti-steering statute:

Claimants whose vehicles have been damaged in accidents should be fully informed regarding the benefits and services offered by insurance companies as part of the claims process. Those benefits and services include, but are not limited to, policy terms regarding repair warranties, the type of replacement parts used in the repair, the anticipated time to repair the damaged vehicle, the anticipated costs associated with the repairs, and the quality of the workmanship.

Claimants benefit because being informed about the benefits and services offered by insurance companies allows them to make meaningful choices regarding the repair process and the automotive repair dealer to be used.

Insurers should present that information in a truthful and nondeceptive manner.

The amended version of the bill also reiterates that insurers may discuss “benefits and services” in the anti-steering code section outlining exceptions to the rule, “No insurer shall suggest or recommend that an automobile be repaired at a specific automotive repair dealer.”

The Collision Repair Association of California (CRA) and the California Autobody Association (CAA) both have said they would continue to oppose the bill unless it was amended, and the CRA said the term “benefits” must be removed from A.B. 1200.

“The term ‘benefits’ opens the steering door a mile wide,” CRA lobbyist Richard Steffen said. “I don’t care how you rewrite this bill, if ‘benefits’ remains in the language, steering will be sanctioned by state law.”

After the latest round of changes to the bill, Steffen reiterated the CRA’s opposition in a letter to the Senate Banking, Finance and Insurance Committee, which was scheduled to hold the July 1 hearing.

"A.B. 1200 would allow an insurer to steer claimants to the insurer’s favored shops without disclosing that it has a working relationship with these shops," Steffen stated in the letter. "A.B. 1200 is a bad business model for consumers."

In another letter to the committee, CAA Executive Director David McClune said the bill should be held in committee until the complex issues surrounding steering in the state can be dealt with properly by legislators and the California Department of Insurance, which is working on its own set of anti-steering regulations (click HERE to read more).

"The CAA is very concerned that A.B. 1200, as proposed, would instead allow insurers to legally ‘steer’ the insured or claimant to an insurer preferred repair shop even after an informed consumer has clearly made a choice as to where the vehicle should be repaired," McClune’s letter stated.

CRA President Lee Amaradio said that insurers will have a “death lock” on the shop selection process if the bill passes.

To read the bill, click HERE (proposed additions to the anti-steering statute are in italics).

Click HERE for a previous story about the bill.

Click HERE to download a copy of Steffen’s letter to the committee.

Visit for more about the CAA’s opinion on the bill. Visit for the CRA’s opinion.

You May Also Like

Cruise Postpones Release of Driverless Taxi Service

Cruise, a GM subsidiary, recently announced that it will miss its goal of launching a large-scale self-driving taxi service in 2019.

Cruise, a GM subsidiary, recently announced that it will miss its goal of launching a large-scale self-driving taxi service in 2019. Cruise CEO Dan Ammann said the company plans to dramatically increase the number of its autonomous test vehicles on the road in San Francisco, but will not be offering rides to regular people this year, according to an article from The Verge.

Cutting Edge Automotive Solutions Partners with Andretti Rallycross

Andretti Rallycross announced that Cutting Edge Automotive Solutions will serve as technical partner on Cabot Bigham’s No. 02 OINK Clothing Beetle for the remainder of the 2019 Americas Rallycross season, showcasing their SP Tools USA brand.

Ford, Volkswagen Expand Collaboration to Include Autonomous, Electric Vehicles

Ford Motor Company and Volkswagen AG announced they are expanding their global alliance to include electric vehicles – and will collaborate with Argo AI to introduce autonomous vehicle technology in the U.S. and Europe.

CCAR Updates Website with More OSHA Alliance Resources

CCAR (Coordinating Committee For Automotive Repair) has announced the addition of new Occupational Safety and Health Administration (OSHA) Alliance content on its main website,

CARSTAR McLaren Lake Forest and CARSTAR McLaren Irvine Open in California

Owned by husband-and-wife team James and Mary Davis, CARSTAR McLaren Lake Forest and CARSTAR McLaren Irvine are a family business.

Other Posts

CIECA to Offer Webinar on What Businesses Need to Know to Implement CIECA Standards

CIECA will hold its next CIECAst webinar, “Implementing CIECA Standards: Implementation Guide and Appendix C – BMS, Code Lists and Shema Components,” on Tuesday, Dec. 11, 2018 at 11 a.m. CST.

CARSTAR Urges Customers to Stay Winter Ready

Cold weather can create some of the harshest driving conditions of the year. The months between October and February top the list for accidents, vehicle damage and injuries.

CIECA Adds Broadly as Corporate Member

The Collision Industry Electronic Commerce Association (CIECA) announced that Broadly has joined CIECA as a corporate member.

NABR Launches BillableGenie Online Searchable Database of Insurer-Paid Not-Included Procedures

National AutoBody Research (NABR) has announced the launch of its BillableGenie online service, an independent, centralized source of actual data on insurer paid not-included procedures and operations, labor rates, labor rate concessions and other manually entered estimate line items.