Kentucky Auto Glass Law Curbs Rebates, Preserves Zero-Dollar Deductibles

The new law is similar to one passed in Florida last year, ending assignment of benefits.


Kentucky enacted a new auto glass industry law, effectively ending the assignment of benefits while also prohibiting promotional incentives like rebates or gift cards in insurance claims. This legislation, signed into law by Gov. Andy Beshear in April, closely aligns with similar legal standards established in Florida last year.

The law mandates a new operational framework for auto glass service providers. Prior to initiating any repair or replacement jobs, glass shops are now required to secure either an insurance claim number or a customer's waiver of insurance. This regulation is part of a broader effort to standardize practices and ensure transparency within the industry.

Under the new regulation, shops must also inform customers about the presence and potential recalibration needs of ADAS in vehicles, a critical step given the complexity and safety implications of these systems. Furthermore, the law enforces a straightforward billing practice, requiring glass shops to provide detailed invoices that include an estimate of fees and a clear declaration of the shop's standard charges. This is intended to prevent overcharging by stipulating that fees must align with what is "reasonable and customarily charged" in Kentucky.

The legislation continues to support consumer choice, explicitly allowing customers to select their preferred glass services shop. It also permits insurers to maintain a network of approved service providers, balancing consumer preferences with industry structure.

To combat fraudulent practices within the sector, the law outlines strict prohibitions against deceitful behaviors by service providers. These include making false statements to customers or insurers.

Kentucky's stance on maintaining a zero deductible policy for auto glass services remains unchanged, ensuring vehicle owners are not burdened with out-of-pocket expenses for necessary repairs.

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