Local news stories affecting the auto body industry in California, Nevada, Oregon, Washington, Idaho, Montana, Hawaii, Alaska and Wyoming
Insurance Commissioner Steve Poizner was joined by State Farm’s California Senior Vice President Rand Harbert to announce a $219 million rate reduction for State Farm Mutual Auto Insurance Company policyholders in California on May 14. This represents an average decrease of 8 percent. State Farm policyholders throughout California will be keeping $219 million more of their hard-earned money, thanks to this rate cut,” said Commissioner Poizner. “Since I took office 2007, rates have fallen by nearly $2 billion for California consumers, and it is encouraging that in these tough economic times, the largest auto insurer in the state is passing company savings along to policyholders.”
There has been a great deal of discussion recently about database manipulation. This manipulation can take many forms and exists at the expense of the collision repair industry and the rights of California’s consumers.
There’s an old Arabian proverb that’s become popular with our politicians: “If the camel gets his nose into the tent, his body will soon follow.” The proverb suggests that if the nose enters, step-by-step the whole camel will eventually be inside the tent and the occupant will be shivering on the outside.
Michael Spears, of Collision Authority in Nevada, reports that AB297 passed the Assembly on April 21 and now heads to the Nevada Senate. The vote was 31 yea, 10 Nay, 1 Not Voting. Spears credits an active collision repairer campaign to educate and solicit support from the Assembly.
The California Autobody Association asks ARE YOU BEING ASKED TO SELL YOUR PAINT MATERIALS AT COST?
There are several software programs available to both insurers and body shops that calculate the paint materials charge by not only using the number of refinish units, but the color of the car as well as other job specifics.
Parts Certification Provision Eliminated
California Senate Bill 350, “The Motor Vehicle Insurance: Automobile Repairs: Restraint Systems Act,” has been re-referred to the California Senate Banking, Finance and Insurance Committee. State Sen. Leland Y. Yee (D), author of S.B. 350, amended and re-introduced the bill to the committee.
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Unbeknownst to the majority of consumers, auto insurance companies are unlawfully steering them away from the repair shop of their choice and dictating where they can go and what parts can be used in the repair process. Many shops are cognizant of this anti-competitive business practice, but are reticent to act for fear of Insurer retribution. Unfortunately, the law has also made it difficult for auto body repair shops to do anything about unlawful steering. The solution lies in the missing link—consumers.