A committee of Oregon lawmakers last month said they like the concept of consumers being made aware of direct repair agreements between collision repair shops and insurers, but the details of how to accomplish that still needs some work.
A bill introduced in the California legislature in February would establish a legal presumption that "certified" non-OEM crash parts are legally of "like kind and quality" to OEM parts. Assembly Bill 1163 (AB 1163) would also invalidate the current law that prohibits an insurer from requiring the use of non-OEM parts unless the vehicle owner is told of and approves the use of such parts on his car, replacing it with the requirement that the following statement appear on the estimate: "This estimate has been prepared based on the use of crash parts supplied by the manufacturer of your vehicle or certified aftermarket crash parts supplied by an independent manufacturer."
Shop owners must remain ever attentive to legislation introduced to control aspects of the collision repair process. Provisions may be added to seemingly innocuous bills that can have devastating effects on how autobody shops do business. And a bill's sponsor can be a clue to the need for added vigilance.
In the blink of an eye, it was all over but the shouting. With the ink barely dry on a letter of intent from Caliber Collision Centers to purchase 27 shops from the financially troubled M2 Collision Care Centers, the deal was dead. According to Caliber Vice President John Walcher, as the due diligence began, it became apparent that the deal would not be consummated and Caliber pulled out. At press time, unconfirmed reports indicated that Caliber had not purchased a single M2 shop, but was negotiating on the large, still unsold Santa Monica location.
Here's your assignment: Pretend you have 45 seconds to talk about your business in front a group of people you'd love to have as customers. Could you tell them something that's unique about your business, something that no other shop in your area could or is likely to tell them?
The multi-association task force created to address repairer concerns about how the estimating database companies operate reported on its early progress in April and defended its decision to include insurers in the process.
A bill introduced in the California State Senate that was called "extremely bad for the collision repair industry" by the California Autobody Association (CAA) was effectively gutted in the insurance committee before being passed and sent to the full senate.
With the growing number of insurance company direct repair programs - and with many insurers processing an increasing percentage of their claims through such programs - it's easy to understand why some states are looking to put the brakes on "steering" of work by insurers.
Calling it "a piece of legislation as 'American as apple pie,' and one that is vital to motoring consumers and the five million plus Americans working in the automotive aftermarket," David Parde, the president of the Coalition for Auto Repair Equality, applauded U.S. Representatives Joe Barton (R-TX) and Edolphus Towns (D-NY) for re-introducing H.R. 2048: The Motor Vehicle Owners' Right to Repair Act in the 109th Congress.