Insurers Say Vote No to Arizona Vehicle Repair Legislation

The Property Casualty Insurers Association of America (PCI) is asking the Arizona Senate to vote no on House Bill 2063, a bill that it says would make it more difficult for insurers to provide consumers important information about automobile and glass repair facilities.

The bill, originally an eminent domain bill, was amended in the Senate Transportation Committee, by striking the original language and inserting language from HB 2385, which put significant restrictions on insurers’ ability to even talk to policyholders about repair shops and would have disallowed insurers’ ability to offer consumers a list of collision repair facilities that provide timely customer service at a competitive price, the association said. Those facilities also guarantee their work and the parts they use.

“The majority of consumers want their insurance company to help guide them to a reputable service provider, said Kelly Campbell, PCI regional manager. “Insurers deal with repair issues hundreds of thousands of times per year. It only makes sense that if you ask your insurers for recommendations that they can provide you with reliable information and experience with repair facilities they know offer enhanced service.”

Under current law, insurers must inform the consumer of the right to choose their own repair facility. Insurers and their representatives are prohibited from making untrue statements, and if repairs aren’t completed in a timely manner, the insurers have additional financial obligation to the consumer. “The laws that are currently on the books provide important consumer protections. However, the Strike Everything Amendment to the HB 2063 could have unintended consequences for Arizona consumers. This type of legislation provides disincentive for insurers to compete in the marketplace and could ultimately diminish the types of auto insurance products and services available to consumers.” Campbell said.