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Page 2 of 2 In Wisconsin, legislation is under consideration that would prohibit insurers from steering consumers to shops, altering estimates without physical inspection of the vehicle, or imposing DRP pricing on non-DRP shops. The bill, backed by the Wisconsin Auto Collision Technicians Association, Ltd., has four main provisions. It would: 1 require disclosure to consumers (on estimates, shop signage and insurance cards, as well as orally by insurers) of their right to use the shop of their choice; 2. prohibit insurers from suggesting that if repairs are not made at a particular shop, the repairs will cost more, be delayed, or not be guaranteed; 3. require an insurer to pay for the repair at the same rate that the general public pays, unless the insurer and repair facility have an agreement otherwise; and, 4. prohibit insurers from preparing an estimate, or altering an estimate that was prepared by another party, without first making a physical inspection of the damage to the vehicle. In Maryland this summer, the legislature is looking into issues raised this spring after a bill was introduced that would appoint an independent auditor to annually establish average market rates for collision labor, parts, paint and materials. A hearing on the bill included discussion of other issues, such as steering of work by insurers, and non-OEM parts. Maryland lawmaker Rick Impallaria said that based on this summer’s discussion, he envisions perhaps three bills being introduced in that state next year: one dealing with improving the existing steering law, one examining contractual agreements between shops and insurers (which Impallaria believes are illegal), and one focusing on labor rates. Some efforts stalled With efforts at the federal level to pass “Right to Repair” legislation seeming to have stalled earlier this year, similar bills were introduced in a number of states, including Oklahoma, Florida, Maine, Massachusetts, New Jersey and Nevada. The legislation would require automakers to make vehicle repair information available to consumers and independent repairers, something that some groups, most notably the Automotive Service Association (ASA), say is already happening through a voluntary agreement with the automakers. While a state “Right to Repair” bill was still alive in Massachusetts after a hearing in late June, lawmakers in Florida, New Jersey and Oklahoma declined to move the bills forward in their states. Nevada passed a resolution simply encouraging the automakers to work with the National Automotive Service Task Force, the organization overseeing the voluntary efforts by automakers to make the information available. But despite a lack of success at the state level, backers of the federal “Right to Repair” legislation were heartened this summer when it was finally reintroduced (as HR 2694) by six members of Congress including Reps. Edolphus Towns (D-NY), Anna Eshoo (D-CA) and George Miller (D-CA). Meanwhile, legislation introduced in several states (including Washington, Rhode Island and Nevada) to prohibit insurer-owned shops did not appear to be gaining much traction this year. Whether Texas’ ban on insurers owning additional shops in that state will ever go into effect is still in the courts. This past May, the U.S. Court of Appeals, 5th Circuit, heard arguments from both sides in the case as part of Allstate’s lawsuit seeking to have the law found unconstitutional. It is unknown when the court will issue its decision in the case. John Yoswick is a freelance writer based in Portland, Oregon, who has been writing about the automotive industry since 1988.
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