Bill would ban insurer 'preferred' repair networks; insurers say networks help consumers

Summary

Representative Ben Koppelman sponsored HB1359 to restrict insurer steering to preferred auto body shops. Small repair shop owners urged passage to protect customer choice and local shops' economics; insurers and trade groups warned the change would reduce convenience, slow repairs and potentially raise costs.

Representative Ben Koppelman told the House Transportation Committee he introduced House Bill 1359 because some insurers steer drivers to a network of "preferred" repair shops, a practice he and several small shop owners said has squeezed independent shops and reduced consumer choice.

"The idea is that they don't try to suggest your influence where you take your vehicle to," Representative Ben Koppelman said in his opening remarks, arguing that insurance influence can reduce local competition and push work to a smaller set of shops.

Small shop owners and technicians testified in support of the bill, saying insurers' preferred or direct repair programs (DRPs) make it difficult for independent shops to compete and that insurer practices have suppressed prevailing labor and materials rates. Rick…

Bill would ban insurer 'preferred' repair networks; insurers say networks help consumers

Summary

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