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Committee advances bill limiting insurer steering to preferred repair shops after amendment
Summary
The committee voted 11–3 to advance House Bill 1359, amended to prohibit insurers from giving only a preferred‑shop list or incentives that effectively steer a claimant to a single shop; the final text removed language that would have limited insurer communication about shops.
Representative Joshua Koppelman sponsored House Bill 1359, a measure that would restrict insurer practices that the sponsor and supporters described as pressuring policyholders into certain repair shops.
The sponsor said he introduced the bill after hearing testimony that insurer preferred‑shop networks concentrate work in large volume shops and can disadvantage smaller independent shops. “This is the Amazon of this issue,” Koppelman said, arguing the market impact of preferred networks reduces competition and can compress labor rates for repair technicians.
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