Local news stories affecting the auto body industry in California, Nevada, Oregon, Washington, Idaho, Montana, Hawaii, Alaska and Wyoming
State Senator Migden: “SB 1059 removes the Catch-22 that some insurers put claimants and repairers in when insurers insist that aftermarket parts be used in repairs even though doing this can void their clients’ vehicle warranties.”
The CRA today called on repairers in California to rally around SB 1167 which it called “truth-setting policy” that protects consumers from insurer CRP steering tactics. The bill, authored by State Senator Pat Wiggins (D-Santa Rosa) and sponsored by the CRA, states that when a claimant first reports an accident, the insurer would be required to ask if the claimant had selected a repairer. The bill then ties into current law that directs insurers not to recommend or suggest alternative repair choices when the claimant has selected a repairer. The bill is tentatively set for hearing on Wednesday, April 2, 2008 in the Senate Committee on Banking, Finance and Insurance.
Car customizer Bill Cushenbery is a legendary character and the fate of his hand-built bubble-top all aluminum sports car—the Silhouette II—has been shrouded in mystery for 35 years. After splitting with financial partners in 1964, the car was sold, and thus began the saga of the lost Silhouette II. Bill retained the bubble top and doors thinking the car couldn’t be finished without the parts and he could ultimately get the car back, but the car essentially disappeared.
Weighing in on California S.B. 1167—on the opposition side, insurance company associations claim that such restrictive legislation would deprive consumers of information needed to make informed decisions on repairing vehicles following accidents. Referring to S.B. 1167 as an “anti-consumer bill,” insurer representatives state that the best consumer is the most informed consumer.
On the request of the California Autobody Association (CAA), Senator Lou Correa (from the Santa Ana, California area) has introduced SB 1371, which would prohibit insurers from arbitrary “capping” paint and materials charges associated with automobile insurance.
The Collision Repair Association of California (CRA) is sponsoring SB 1167 to stop insurers from driving through two holes in California’s anti-steering law. The legislation, introduced February 7, 2008 by State Senator Pat Wiggins (D-Santa Rosa), requires insurers to first determine if the claimant has selected a shop prior to any discussion of repairs; and it prohibits insurer discussions of DRPs if a claimant has selected a shop.
The Collision Repair Association of California (CRA) is supporting legislation, SB 1059, sponsored by State Senator Carole Migden (D-San Francisco) that would penalize an insurer that requires a repairer to install an aftermarket part on a vehicle under a factory warranty. The bill, introduced January 7, 2008, seeks to protect both consumers and repairers in situations where the use of an aftermarket part might void the factory warranty.