Anti-Steering Legislation is the Wave

The big wave on the legislative front across the country is anti-steering or notice legislation. California has acted on legislation.

The California bill was intended to make it unlawful for an insurer to direct or recommend that a vehicle be repaired at a particular shop unless the customer requests a referral. Violators would be liable for damages suffered by customers and owners of other repair shops, and the bill allowed injured parties to bring action for damages—and recovery of attorneys’ fees, if they win. The California law provided that when a policyholder first reports vehicle damage to an insurer, the insurer must determine if the policyholder has selected an auto repair facility prior to providing any information regarding a program or a facility that performs auto body repairs. If it is determined that the policyholder has selected a repair facility, the representative of the insurer shall cease, or not engage in, any discussions regarding a program or a facility that performs auto body repairs. It is reported that this bill passed, but I have not found the final version yet.

In Connecticut, the state’s Attorney General introduced a bill amending the current anti-steering law to say that “no insurance company … shall recommend, request or require any insured to use a specific person for the provision of automobile physical damage repairs, glass replacement, glass repair service or glass products.”

The proposed Missouri bill provided that insurers could not request or require that appraisals or repairs be made in a specified facility or repair shop. When a customer has chosen a repair facility, any attempt to change or restrict the claimant's decision shall cease. All appraisals would include a notice that the consumer has the right to choose a repair facility to repair his or her vehicle. This notice must also appear in boldfaced type on any insurance policies. I have not yet also found the final Missouri bill, although it was reported to have passed.