Washington Legislation Hopes to Eliminate Insurer-owned Body Shops

A hotly contested debate in today's collision repair industry centers on insurer-owned shops and the legalities of it. In the state of Washington, legislators believe insurer-owned shops are illegal, and they are trying to do something about it.

Introduced by Washington State Rep. Steve Kirby, House Bill 1113 would protect the rights of consumers and small businesses in the state of Washington.

This legislation would prevent insurance companies from having an ownership interest in automotive repair facilities. Many feel that such ownership interest by insurance companies is seen as being in direct conflict with a consumer's right to choose.

The Automotive Service Association (ASA) strongly supports the bill, and ASA Washington President and Executive Director Jeff Lovell is spreading the word about the importance of the cause.

"Insurer-owned collision shops dramatically change the insurer-repairer-consumer relationship," says Lovell. "Removing the independent repairer from the repair experience hurts the consumer and the small business community. Independent repairers are advocates for consumers. If they are removed from the marketplace, cheaper and quicker will become the rule."

The bill got started when collision repairers, including ASA members, wanted to make sure that consumers and small businesses were protected. Lovell and ASA feel that all states should follow Washington's lead and enact a similar bill.

"The insurance industry is regulated at the state level and it's our only option," says Lovell. "To stop insurer-owned shops, we have to look to our state legislatures."

ASA is urging shop owners in the state of Washington to contact their state legislators asking that they support House Bill 1113, and is asking other states to ask their legislators to craft similar bills.

As with anything, there is opposition to the bill. Mostly the opposition is from insurers, but there is precedence that seems to side with shops.

"Allstate and Sterling are challenging the Texas insurer-owned shop law," says Lovell. "They lost at the federal district court level, but have appealed."

To view the bill in its entirety or to send a letter to your elected representatives, visit ASA's legislative Web site at www.TakingTheHill.com/.