Committee advances bill to allow vehicle value protection agreements with consumer safeguards

House Bill 504, which would create a regulatory framework for vehicle value protection agreements, drew extensive questions from committee members and earned a committee "do pass" recommendation after testimony from the bill’s presenter.

The bill, presented to the Regulated Industries Committee by Martin Monaghan, would authorize voluntary vehicle value protection agreements (VVPAs) for both financed and cash purchases. Monaghan told the committee that the measure “is a step towards ensuring consumer protection and market competitiveness in Georgia’s automotive industry.” He said the bill sets disclosure requirements, requires providers to maintain financial security, and grants consumers cancellation rights including a minimum 30-day free-look period.

The bill’s supporters said VVPAs differ from traditional gap insurance because they can benefit buyers who paid cash or made large down payments. Monaghan described a typical product offered in other states as a depreciation benefit — for example, a $10,000 benefit over 60 months — and said dealer cost for that product is often about $1,000. He also told the committee the attorney general…