Michigan’s insurer-owned repair shop legislation (H.B. 4778) has passed the House of Representatives. The bill, introduced in May 2007, would ban insurance companies from owning repair facilities in Michigan. The legislation would also prohibit insurers from developing a list of preferred shops or in any other way conveying to an insured information regarding which repair facility the insured should use for repairs.

“Michigan legislators have heard the concerns of collision shop owners,” said Automotive Service Association (ASA) spokesman Bob Redding. “Insurer-owned shop legislation has been tested all the way to the U.S. Supreme Court with the Texas insurer-owned shop law. This bill is good for consumers, small businesses and jobs in local communities.”

ASA is encouraging its members to contact Michigan state senators to push for the bill’s passage.

For more information, visit ASA’s legislative Web site, www.takingthehill.com.