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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.
Why it matters: The bill addresses the business relationship between auto insurers and body shops. Proponents argued it protects consumer choice and preserves small‑shop competition. Opponents — carriers and some industry groups — argued insurers help consumers by directing them to shops that meet insurer quality and warranty standards and that communication about network shops can be informative.
Key testimony and changes - Sponsor argument: Koppelman said insurers’ preferred networks can “discriminate against small shops” and that consumers retain the right to choose a shop but are sometimes steered through incentives or network arrangements. - Insurers’ position: Industry witnesses argued insurer guidance can protect consumers and speed repairs; they raised concerns about administrative impacts if insurers could no longer recommend network shops. - Amendment adopted by the committee: After discussion, the committee removed the phrase “or communicate” from a line that had blocked insurers from recommending shops; the final amended text prohibits insurer incentives or preference mechanisms but does not prevent insurers from communicating information to customers. Representative Casper moved the do‑pass motion after the amendment.
Outcome: The committee voted to advance HB1359 as amended. Roll call recorded a do‑pass recommendation 11–3. Representative Casper agreed to carry the bill.
Next steps: HB1359 will move to the House calendar as amended. The committee directed that the bill sponsor and stakeholders continue to refine language so it is clear where incentives cross into impermissible steering while preserving consumer access to information about repair options.
