The American Insurance Association (AIA) says anti-steering legislation in the collision repair industry is “a wolf in sheep’s clothing,” in its latest issue of the Advocate newsletter.
“It could cost American consumers millions of dollars in higher repair costs,” the article says. “While proponents of new legislation market it as being pro-consumer, the reality is that the legislation reduces marketplace competition and restricts consumer access to useful information about their auto repairs.” Existing anti -steering laws have been in place for many years, and companies in all 50 states do not dictate to their policyholders where to have auto repair work done, the article said. “They support the consumers’ right to choose their own repair services.” While vehicle owners may be involved in only a few incidents requiring auto repair during their lifetime, automobile insurance companies process more than 25 million auto repair and replacement claims annually, the article said. “This puts insurers in a unique position to know which auto repairers do the best work and provide the best service,” the article says. “Their experience with auto repairers also allows insurance companies to guarantee the work done by specific providers.” The article referred to bills introduced in California, Connecticut, Massachusetts, Missouri and Washington that have sought to expand existing laws by prohibiting insurance companies from making recommendations to their insureds or negotiating pricing and services with repair providers. “If successful, some of the proposed legislation would limit a consumer’s ability to take full advantage of choices that insurers want to offer, including concierge programs arranged by insurance companies,” the article says. “These programs can reduce repair times, improve convenience, and enhance consumer choice.” The AIA said it has taken an active role in each of the states where legislation is pending. “Most of the current bills are generated and supported by the auto repair industry in an attempt to limit free trade and speech,” the article says. “AIA will continue to work to help prevent the passage of these bills and will continue to focus on educating legislators about the importance of consumer choice,” the article says. “Ultimately, a larger number of consumers will benefit from more, rather than less, choices and information. For more information or to download the article, visit www.aiadc.org. | 
