Proposed Arizona Bill Addresses Auto Glass Repair and Replacement Practices

Arizona state Senator David Farnsworth has introduced an amendment to the state’s current legislation that relates to auto glass repair and replacement practices. More specifically, it addresses how auto insurers and third party administrators (TPAs) should handle auto glass claims. 

The bill, SB 1424, would prevent auto insurers and TPAs from steering, incentivizing and coercing a customer to use one of its preferred auto glass shops. The proposed amendment also addresses fair pricing and insurer inspections.

Under the proposal, the insurer must pay the “insured’s chosen vendor based on a competitive price that is fair and reasonable within the local industry at large.” In addition, if an insurer or TPA requires an inspection before the glass can be repaired or replaced, they must do so within 24 hours of the claim being filed, or it will be considered an “unreasonable delay.”

The amendment defines “fair and reasonable” as no more than 10-percent off NAGS benchmark pricing for parts, and, in regards to labor, no less than $75 per hour.

The amendment also aims to prevent auto glass shops from incentivizing customers to file a claim by offering coupons, a rebate, gift, gift card or cash with an aggregate value of more than $100.

As for steering, the bill states an insurer is not allowed to coerce, intimidate, threaten, or incentivize a policyholder into choosing a particular auto glass facility. Taking it one step further, the amendment adds that an insurer or TPA is not allowed to undermine the work of the insured’s vendor choice if it is not a part of the insurer’s network, nor is the insurer or TPA allowed to imply that the work would be performed faster or the claim be completed faster if the insurer chooses an auto glass shop in its network.

The bill is currently in the Senate.

To read the full text of the bill, click here.

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3 Responses to Proposed Arizona Bill Addresses Auto Glass Repair and Replacement Practices

  1. Grant Smith says:

    Awsome, but it’s SB1424, not 1242. I do hope this bill gets the support of our industry and our legislators.

  2. I hope this passes , it is TERRBILE that shops are able to buy customers with money …

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