One Southern State Moves to Ban Insurance Steering in Auto Repairs

A group of Georgia state legislators recently introduced a bill to curb steering practices and require insurers to allow automotive repair facilities to follow original equipment manufacturer (OEM) guidelines.

Legislators Lehman Franklin, Tyler Paul Smith, Ron Stephens, Mike Cheokas, Matthew Gambill and Matt Reeves jointly introduced HB 1117 to the Georgia House of Representatives on Feb. 2. If passed, the bill will update existing insurance and business regulations to include provisions for the automotive repair industry, including glass.

Several Georgia state legislators introduced a bill regulating automotive insurance practices.

Anti-Steering Regulations

The bill says that even liability-only motor vehicle insurance policies must allow claimants to select their own repair facilities.

“No insurer shall require a claimant under such policy to use a repair facility in which such insurer has a financial interest,” the bill says. “No insurer shall represent to a claimant under such policy that the use of or the failure to use a particular repair facility … may result in nonpayment or delayed or reduced payment of a claim or less quality or timeliness of repair under a claim.”

Insurers can recommend a repair facility, the bill says, but must “clearly inform” the claimant that they aren’t obligated to use that facility, that they can choose their own facility and the claim amount will be paid regardless of what they choose. The insurer must also inform the claimant if it has a “financial interest” in the repair facility it recommends.

Following OEM Guidelines

The bill would require that all insurance policies must allow motor vehicle dealers, garages, body shops or “other commercial entities” that repair or replace vehicle parts, including glass shops, to make repairs “in accordance with the applicable original equipment manufacturer repair procedures.”

According to the bill, insurers must approve the labor, parts and calibrations needed to properly follow OEM procedure, as long as the repair facility cites the applicable OEM position statement in its written estimate or in a written request.

An insurer can only deny reimbursement if it provides the claimant with a “written itemized explanation for such denial” within three business days of receiving the written estimate or request, the bill says. The explanation must include a notice that the denial “might constitute an unfair claims settlement practice under state law.”

Other Insurance Regulations

The bill would also require insurers to assign an appraiser to investigate damage within one business day after being notified of “supplemental damage.”