New legislation in Minnesota brought by the Alliance of Automotive Service Providers is designed to protect the repair shops that are selected to service vehicles that have been involved in accidents.

The new law will make it illegal for insurers to alter an estimate by a repair shop when the damages are being disputed. The law states that only when an insurer carries out a physical inspection of the vehicle, can the repair shop estimate be amended. The bill already outlined that a representative of an insurer is not to negotiate repairs to damaged vehicles that they insure through intimidation or other techniques aimed at the repair shop, to reduce estimates or actual costs.

The revision to the 2006 Minnesota Statutes also states that representatives of an insurer should not limit the right of an insured or claimant to choose the shop or attempt to obtain a claimant's signature that allows the representative to select the repair shop on behalf of the insured.

New language added to the bill also prohibits the representative from mentioning the dealings with the specific vendor used to acquire parts or materials needed to complete the necessary repairs. However, the addition to the bill does not mean that the insurer must pay more than the reasonable, standard market price for parts of similar quality in handling the claim.

The new legislation will be effective as of August 1, 2007.

Special Reports /

New Law Protects Repair Shops

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