The bill, approved by the Rhode Island Senate on June 13, would have made it easier for auto body shops to sue insurance companies that do not pay them what they believe they should be compensated for repairs.
The Auto Body Association of Rhode Island supported the bill, which was opposed by the insurance industry.
“I believe this bill would hurt Rhode Island consumers by raising their auto insurance rates and impairing their existing contract agreements with their insurance companies,” Gov. Chafee said.
Supporters said the bill would level the playing field between auto body shops and auto insurance companies and be good for Rhode Island drivers. The bill, sponsored by Rep. Stephen Ucci, would allow repairers to sue in small claims court instead of having to hire an attorney to represent them in a higher court.
Critics of the bill said it would only benefit auto body companies and lead to higher auto insurance costs throughout the state. The bill passed the 38-member Senate in a 24-11 vote.
The bill also would have enhanced anti-steering provisions and improve total loss requirements. To view the full text of the bill vetoed by Chafee, visit ASA’s legislative website at www.TakingTheHill.com.
