A bill proposed in the Kentucky House of Representatives would curb insurance companies’ ability to steer customers to certain repairers for collision repair work.
House bill 186, which was introduced to the Kentucky House of Representatives Jan. 5, would require insurance companies to notify insured parties of their right to use a repair facility of their choice. It would also prevent insurers from requiring the use of a specific business for automobile repairs, and would state that insurers may not engage in “deceptive referral” practices to steer customers to certain repair facilities.
The bill also proposes that any damages paid by an insurer must be based on a “free market rate.” An insurer may not limit the amount it pays for repairs on the basis that the repair would have cost less at certain repair shops or in certain locations, according to the bill.
The bill would also require insurers to pay for claims within 30 days of receiving the proof of claim.
Visit lrc.ky.gov for more information on bill 186.
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