Iowa Considers New Auto Glass Repair Regulations
Iowa lawmakers are currently reviewing Senate Study Bill 1192, a piece of legislation that would significantly alter the regulations surrounding automobile glass repairs and related insurance claims. The bill addresses several key areas, including fees, Advanced Driver Assistance Systems (ADAS) calibrations, and incentives offered by repair shops.
Key Provisions of the Bill
One of the primary focuses of Senate Study Bill 1192 is to prevent policyholders from transferring or reassigning any post-loss benefits under their insurance policies. Furthermore, the proposed legislation would prohibit repair shops from offering gifts, cash, or other incentives to encourage customers to use their services. This aims to curb potential conflicts of interest and ensure that consumers make decisions based on the quality of service, not the lure of rewards.
Additionally, the bill includes provisions against unfair business practices. Repair facilities would be prohibited from charging unreasonable fees, submitting fraudulent documents to policyholders or insurers, misrepresenting repair costs, or claiming that repairs have been approved without confirmation from the insurer. According to AM Best, the bill would also prevent insurers from requiring policyholders to use a specific repair shop, although insurers could still offer recommendations or maintain networks of preferred facilities.
ADAS Calibration Standards
The proposed legislation also addresses the increasingly important issue of ADAS. The bill defines ADAS as systems designed to enhance vehicle safety and decrease crash-related losses. Repair shops would be required to inform policyholders if a vehicle’s windshield is equipped with ADAS. If these features are present, the shop must inform the policyholder whether calibration is necessary and whether the shop will perform the calibration. If the shop does not intend to perform or is unable to complete the calibration, the bill would also require them to refer the policyholder to a qualified repair facility.
Procedures and Transparency
Senate Study Bill 1192 includes steps to improve transparency and ensure fair practices. Repair shops would not be allowed to start work on a first-party insurance policy until the policyholder has filed a claim and the shop has received either a claim number or a referral number. They are also required to give policyholders good-faith estimates detailing the expected fees and costs before work begins and to provide updated estimates if changes occur. Upon completion of the work, the shop must provide the policyholder with an itemized invoice.
Context and Impact
Several states already have laws requiring insurance companies to provide full coverage for windshield repairs or replacements under comprehensive coverage without the application of a deductible. For instance, in Florida, insurers are required to waive the deductible for windshield replacements under comprehensive coverage.
In Iowa, insurance companies have responded to rising costs by increasing premiums, limiting exposures, and adapting underwriting strategies, according to a report from the state’s insurance division. This bill could directly impact the cost of repairs and, indirectly, the cost of insurance for Iowa drivers.
