Bill may make car repairs easier
March 8, 2005
A proposed bill may forbid auto insurance companies from forcing clients to use a designated facility for auto repairs.
State Rep. Thomas Holbrook (D-Belleville) said he introduced the bill after some constituents complained they had bad repair jobs by shops recommended by insurance companies.
The bill puts a penalty on insurance companies trying to coerce people into going to a place they do not want to, Holbrook said.
“We’re not trying to prohibit them from making a recommendation or own a body shop,” said Randy Witter, representative of the Alliance of Automotive Services Providers of Illinois.
“We’re saying the consumer ought to be able to select a repair shop without undue pressure of the insurance companies.”
The bill is about consumer awareness and protection from coercion, Witter said.
Consumers should be aware that insurance companies often have prearranged rates with body shops, Witter said.
“A number of consumers have been coerced into taking their cars into substandard repair facilities that are 50 miles away from their homes,” Witter said.
The bill has garnered some opposition from the insurance industry.
Kevin Martin, executive director of the Illinois Insurance Association, said insurance companies have already put together a preferred listing of repair facilities they know do a good job of repairing the cars.
Martin said insurance companies do not have a financial interest in the repairs other than keeping the cost of repairs down for the policy holders.
“The current system works; there are no abuses,” Martin said. “The automotive body shops are disgruntled as to who was getting the work and who wasn’t.”
The insurance companies are able to guarantee the quality of work because of their relationship with the repair facilities, Martin said.
If the bill passed, it would result in premiums increasing because the cost of claims would increase as there will no longer be a guarantee repairs will be done right the first time, Martin said.
He said the IIA was opposed to the stringent guidelines of the bill and its bureaucratic amendments such as secretary of state involvement.
Craig Munson, president of Munson Insurance, 336 E. Lincoln Highway, said he was opposed to the a bill.
Insurance companies that recommend premier facilities provide better, quicker service and a guarantee from the insurance company, Munson said.