Iowa has passed a new law regulating automobile glass repair and insurance claims, introducing significant changes for repair facilities, insurers and policyholders in an effort to improve oversight, transparency and safety in the claims process.
Signed by Gov. Kim Reynolds, the legislation prohibits repair shops from offering gifts or cash incentives to attract customers and bars consumers from reassigning post-loss insurance benefits. It also imposes stricter requirements on billing practices and advanced driver assistance systems (ADAS) recalibrations.
Under the new statute, repairers must not start work on first-party claims until a claim has been filed and a referral or claim number has been issued. Additionally, shops must provide a good-faith estimate before beginning repairs and issue a detailed invoice once work is completed.
The law also outlines acceptable conduct for both shops and insurers. While insurers cannot mandate the use of a particular repair facility, they are still allowed to recommend preferred vendors and operate within direct repair programs (DRPs).
To prevent misrepresentation, repairers are now expressly prohibited from stating that an insurer has approved a repair unless such approval has been explicitly provided. The law also bans charging unreasonable fees, submitting false documentation, or misrepresenting repair costs.
The legislation originated as a Senate study bill and remained largely unchanged through the legislative process before its final approval.
Additional Iowa Insurance Regulatory Updates
The new auto glass law follows other recent regulatory moves by the Iowa Insurance Division (IID).
In November, the IID issued Bulletin 24-04, aligning state guidance with the National Association of Insurance Commissioners’ (NAIC) model on artificial intelligence use in insurance. The bulletin reminds insurers that AI-driven models must comply with laws against excessive, inadequate or unfairly discriminatory rates.
In April 2024, the IID also revised Chapter 90 of the Iowa Administrative Code, removing outdated terms and improving clarity on financial and health information regulations, enhancing transparency for insurers operating in the state.
