Louisiana Passes Law Allowing Mechanical Breakdown
Insurers to Provide Windshield-Specific Policies
June 14, 2010
Louisania Gov. Bobby Jindal signed a law late last week that will
allow vehicle mechanical breakdown insurers to provide customers
with specific vehicle component coverage contracts for several items,
including windshield-specific coverage, for road hazards.
Under the terms of the law, mechanical breakdown insurers can now
provide windshield-specific contracts to their customers, and that
contract would "promise to pay for all or part of the cost
of the repair or of the replacement of windshield or window glass
on a motor vehicle when the damage to the glass is caused by contact
with a road hazard." The law, which has already taken effect,
says the term "road hazard" includes items such as potholes,
rocks, curbs, wood debris, other debris, nails, screws, bolts, metal
parts or glass, but not damage caused by a collision with another
vehicle, vandalism or other causes "usually covered under the
comprehensive or collision coverages."
Vehicle mechanical breakdown insurers are defined as companies
"issuing or attempting to issue vehicle mechanical breakdown
policies or vehicle component coverage contracts."
The bill was introduced in March by Rep. Charles E. Kleckely (R
- La.). Kleckely had not responded to requests for comment on the
bill's origins at press time.
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