CFC opposes AB 1679 which undermines protections against insurers’ steering auto repairs to captive body shops

AB 1679 would undercut recent regulations promulgated by the California Department of Insurance that went into effect in March 2017. The regulations afford protections to claimants against being improperly steered toward an insurer’s preferred auto body repair facility, and implement standards to make sure that insurers are accurately surveying auto body repair labor rates in determining the cost of an insured repair.

By superseding the Department of Insurance’s recently enacted regulations, AB 1679 will eliminate important consumer protections that guard against requiring claimants to travel excessive distances for vehicle inspections by insurers, prohibit delayed insurer vehicle inspections, and open the door for unscrupulous insurers to provide one-sided and manipulative information for the purpose of unduly influencing the policyholder to act in the insurer’s financial interest at the policyholder’s expense.