California Gov. Arnold Schwarzenegger signed into law AB 1200, which was opposed by all the collision repair associations in the state because they said it would hurt independent auto body shops by making it easier for insurers to steer customers to their direct repair program (DRP) shops.
The California Autobody Association said it opposed the bill because it will supersede the existing steering regulation that offered more protection to consumers. “The CAA is very disappointed that AB 1200 was signed by the governor,” says David McClune, CAA’s executive director. “I want to thank all of our members and other supporting industry groups that sent in hundreds of letters to the governor asking him to veto the bill.”
The California Assembly approved AB 1200 42-19 on Sept. 9 and the insurer-backed bill went to the governor for his review. The Collision Repair Association of California will ask him to veto the measure because it will hurt independent collision repair shops, which already are suffering during the economic downturn, while depriving claimants the benefits of a repair analyses based on the right thing to do, not the cheapest way to go.
“AB 1200 is a misleading proposal that allows an insurer to keep the details of direct repair programs secret while it badgers claimants into selecting a repair shop favored by the insurer,” says Lee Amaradio, Collision Repair Association of California president. It will help insurers send more claimants to DRP shops and competition will decrease, CRA said.
