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Legislation intended to level playing field between insurers and state’s auto body shops by prohibiting insurers from, among other things, requiring that their insureds go to a particular shop.
The Alliance of Automotive Service Providers-Minnesota (AASP-MN) has helped develop state legislation intended to level the playing field between insurers and the state’s collision repair shops. If passed, the legislation would prohibit insurers from:
- requiring that insureds go to a particular shop or shops for an estimate
- requiring that shops utilize specific products, vendors, distributors, manufacturers or suppliers
- imposing the terms of pricing agreements an insurer has negotiated with manufacturers, distributors or suppliers of products, parts, supplies or materials used for vehicle repair on a motor vehicle repair shop
“This legislation aims to provide a correction to the imbalance of power that currently exists between insurers and collision repair shops,” a statement from AASP-MN read. “AASP-MN believes that independent businesses should have the ability to freely choose the products they use and the suppliers they do business with – without undue influence or mandates imposed by market-dominant insurers.”
The first stop for the bill will be a hearing in the Senate Commerce Committee scheduled for Wednesday, March 11th.