Wisconsin Collision Legislation Stalls

A measure opposed by the insurance industry, that would make it illegal for carriers to gives customers auto repair shop names after an accident, was stalled in committee this week.

Assembly Bill 353 stalled after a public hearing by the Assembly insurance committee on Wednesday was held without a vote. Legislators said there might be another hearing in the future.

At Wednesday's session a variety of insurers opposing the measure–including American Family, Progressive, State Farm and Keystone Automotive–spoke against it, while its advocates, in addition to its sponsor, included the Wactal Wisconsin Automotive Collisions Technicians Association, a number of small body shops, and various auto and truck dealer association.

In order for the measure to move forward in the Assembly Insurance Committee, Chairman Rep. Frank Lasee, R-Green Bay, must schedule the bill for an executive committee meeting, which he has not done, said Joyce Kiel, a senior staff attorney with the legislature.

The legislation would make it illegal for an insurance company representative to provide information about repair options, such as warranties; eliminate an insurer's ability to negotiate discount rates with repair facilities; and delay the claims process.

The proposed legislation would amend the current law that already prohibits insurers from providing information concerning “repair or replacement of motor vehicle glass,” according to the bill.

The current Wisconsin law already prohibits insurers from requiring the use of a specific repair facility for glass replacement as a condition of coverage.

Ms. Kiel said the bill's language would expand the law to cover other collision repairs.

But some insurance interests, such as AIA, are against such legislation.

“The proposed legislation puts a muzzle on the simple process of an insurer recommending a reputable auto body repair facility to their own customer,” said AIA's assistant vice president, Midwest region, John Birkinbine.

“The legislation being promoted under the veil of 'consumer rights' actually takes away the customer's right to choose a higher level of service and a streamlined claims process,” he added.