Possible Arizona Legislation Could Affect AG Shops, Consumers

A potential action by the Arizona legislature has become a concern for the automotive glass industry there.

The proposed action is the repeal of ARS 20-264, a 2011 revised statute that provides for complete coverage for automotive glass repair or replacement without any deductible, also known as “zero deductible” legislation.

A repeal of ARS 20-264, in addition to requiring deductibles, could result in loss of business for glass shop owners and “unreasonable out of pocket expenses due to high deductible … policies,” according to a statement January 6 by the Independent Glass Association (IGA) to glass shops in Arizona.

IGA executive director Gary Hart was scheduled to attend a stakeholders meeting Tuesday, which included legislators, insurance company lobbyists, and automotive glass interested parties.

“Our agenda is to ascertain the insurance companies feel the need to repeal the law,” Hart said, referring to ARS 20-264. “The current law is to offer the deductible, not make it mandatory. We don’t believe it is necessary at all to change the law.”

Kerry Soat, CEO of Fas-Break, an Arizona automotive glass company, said that unlike most fraud and licensing bills introduced in the legislature, ARS 20-264 is not aimed at the AG industry.

“This bill is directed at consumers, and that’s sad,” he said January 10. “The consumer is the real loser here, because they lose the right to choose.”

If deductibles become mandatory, consumers without the money to cover the deductible amount could conceivably forego windshield repairs, creating a safety hazard, Soat said.

“A broken windshield is a safety problem, especially with passenger-side airbags,” he said. “The consumer who does not have the money won’t get his glass fixed. Now he has an unsafe vehicle.”

 

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