In California, AB 1483 continues to move forward in the legislature despite objections by such representatives of the collision repair industry, as the California Autobody Association (CAA) and Automotive Service Councils in California.  Even the California Department of Consumer Repairs, parent agency to the BAR, is opposed to the bill.

The bill requires auto body shops to provide written certification to the customer that the crash parts identified on the written estimates are the actual parts that were installed on the vehicle during the repair, and that certification must appear on the first page of the final invoice.

“Why should shops continue to prove that they are accurately repairing a vehicle?” asks CAA, which further claims that the bill provides no consumer protection.

On the other hand, the Center for Auto Safety (CAS), sponsor of the bill, argues that this bill will rectify a missing element in California law and provide “authorities with a full complement of tools to stamp out auto body repair fraud and other forms of insurance fraud.”

Oregon supports consumer choice

In Oregon, the governor has signed into law legislation that shops hope will support consumer choice.

Though significantly amended during the legislative process, the new law requires insurers, prior to making a shop recommendation, to tell the consumer that Oregon law prohibits insurers from requiring repairs be made at a particular shop and that vehicle owners have the right to use the shop of their choice.

If an insured chooses a shop recommended by the insurer, the insurer must send the insured in writing within three business days a statement that says, “If you agree to use our recommended repair shop, your vehicle will receive repairs returning it to a pre-loss condition relative to safety, function and appearance at no additional cost to you other than as stated in the insurance policy or as otherwise allowed by law.”

If a vehicle owner does not choose a insurer-recommended shop, the insurer may not limit the cost of repairs “other than as stated in the policy or as otherwise allowed by law.”

Up in Minnesota, the governor has signed into law legislation that prohibits insurers from adjusting a repair shop estimate when the extent of damage is in dispute unless the insurer conducts a physical inspection of the vehicle. This should eliminate so-called “desk audits” of estimates often conducted by third-party (and often out-of-state) companies reviewing estimates and negotiating with shops by phone without ever having seen anything more than photos of the damaged vehicle.

The Minnesota legislation also prohibits insurers from requiring that shops use a particular vendor for parts procurement. The legislation became effective August 1.

“From a practical standpoint, the passage of this legislation means that repair shops will no longer be tied up in disputes based solely on an insurer’s or third-party auditor’s view of a photograph of a damaged vehicle,” said Judell Anderson, executive director of the Alliance of Automotive Service Providers in Minnesota, which backed the legislation. “In addition, the legislation ensures that shops can continue to work with parts suppliers with whom they have established a good working relationship and who they can rely on to provide quality parts and good service.”

Consumer makes the call on parts

In Rhode Island, lawmakers approved legislation this summer that would require repair facilities to provide written notice to consumers informing them of their right to have OEM parts used in the repair of their vehicle.

The measure gives consumers whose vehicles are less than 30 months old the right to choose OEM or non-OEM parts, and requires their insurer to pay for the repairs using the parts they select.

The measure is awaiting signature into law by Governor Donald Carcieri. But Carcieri in July vetoed several other bills related to auto insurance, including one that would have allowed insureds to use the rental car company of their choice and one that would have made it an “unfair practice” for an insurance company not to follow all components of a repair manual when appraising a damaged vehicle.