Despite the opposition of major consumer groups, trial attorneys, consumer groups and several collision repair associations, AB 1200 was approved by the California Senate Sept. 4 by a 21-17 vote, the bare minimum needed for passage. The bill will make it easier for insurers to steer customers to insurer-favored shops.
The bill goes back to the California Assembly where it could be voted on today for concurrence in amendments taken in the Senate. The Assembly already has passed a similar version of the bill. While the bill stands a good chance of winning approval, the Collision Repair Association of California said it is hoping to increase the number of legislators who have voted against the bill.
"Every no vote helps," says CRA lobbyist Richard Steffen. "We were able to get 17 senators to go against this insurance industry measure."
"Don't sit back and hope for a miracle," says Lee Amaradio, CRA president. "If nothing else, the legislature now has a clearer understanding of what constitutes steering. We have a few days to send our final thoughts to legislators. Do it!"
If the Assembly approves the bill, it will go to the governor. If that happens, the CRA will be asking for a veto.
The bill would change a six-year-old state law requiring insurance companies to tell claimants that they have the legal right to get their car repaired at any auto body shop they want. The proposed changes would uphold the vehicle owners’ rights to choose a body shop, but also would allow insurance companies to continue to provide information about their direct repair programs, even after the insureds make a selection.
