Insurers Heavily Influenced New Auto Glass Law

On May 8, the National Insurance Crime Bureau (NICB) announced its key involvement in the recent Kentucky legislation regulating the auto glass industry. The NICB is an association of 1,200 property/casualty insurers, vehicle rental companies, auto auctions and self-insured organizations. It is headquartered in Oak Brook, Illinois.

Kentucky Governor Andy Beshear signed the bill into law on April 2. It prevents the assignment of benefits in the auto glass industry, such as offering rebates, gift cards or other similar items in exchange for insurance claims. According to the law, auto glass shops must get an insurance claim number or waiver of insurance before contracting jobs.

The law also requires shops to inform customers if their vehicles have Advanced Driver Assistance Systems (ADAS) technology and if they need recalibration after service.

In a recent statement, officials from the organization said it worked on this legislation with Kentucky lawmakers to protect consumers from “deceptive practices in the auto glass repair industry.”

“This law will help weed out unscrupulous operators who engage in fraudulent practices, such as overcharging, unnecessary repairs and using substandard materials,” said Eric De Campos, NICB’s senior director of government affairs. “By implementing critical consumer protections, as well as enhancing consumer education, the measure aims to create a more transparent and accountable auto glass repair industry that prioritizes the interests of consumers.”

Kentucky senator Brandon Storm sponsored the law.

“This new law in Kentucky represents a significant step forward in addressing auto glass repair fraud and protecting consumers from deceptive practices,” he said. “The measure would also impose stiff new penalties and fines for violations of the law, and repair shops found guilty of engaging in fraudulent activities would face license revocation and possible criminal charges.”

This article is from glassBYTEs™, the free e-newsletter that covers the latest auto glass industry news. Click HERE to sign up—there is no charge. Interested in a deeper dive? Free subscriptions to Auto Glass Repair and Replacement (AGRR) magazine in print or digital format are available. Subscribe at no charge HERE.

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