Additionally, insurers described the current statute as confusing. The entire collision industry disagrees. The language is very straightforward and does clarify which electronic components are eligible for exclusion. It even allows for additional regulations, if needed, to further clarify these items.
To lose this electronic exclusion would be a disservice to consumers by giving insurers another way to total out a person’s car and this time blame it on the state laws. Currently, insurers have the ability to call any car a total loss, regardless of percentage. We believe they do this when the numbers work out to their advantage and call it an economic total loss. As a result, a consumer can lose a fully repairable car to the insurance as a total loss at a much lower percentage, such as 50 percent or even less.
Furthermore, the NCIA firmly believes that insurance companies can and should currently ‘salvage title’ every vehicle that is acquired by a settlement with the insurance company.”
In regard to Mr. Compan’s comments about working toward asking for regulations to be implemented where they will do mandatory audits of body shops to ensure body shops are repairing cars properly and not charging too much for unneeded and unnecessary procedures, the collision industry would welcome this. It would also hold the insurance companies responsible for making sure vehicles are repaired back to the manufacturers’ guidelines with no used, gray market or copy parts used.
Autobody News will continue to report updates about this bill and similar ones.