Wisconsin bill stops insurers from steering auto repair work

Existing Wisconsin law restricts insurers from conditioning coverage on specific repairers.


Wisconsin Assemblyman Ed Brooks (R-50) recently introduced Assembly Bill 237 regarding automobile repair facility steering by insurance companies, the Automotive Service Association (ASA) reported. The state legislature’s Legislative Reference Bureau (LRB) notes that under Wisconsin law, it is prohibited for an insurer that issues a motor vehicle insurance policy that covers the repair or replacement of motor vehicle glass from conditioning the coverage on whether the insured or a third party making a claim under the policy obtains services or parts from a particular vendor specified by the insurer, the ASA noted.

According to the LRB, Assembly Bill 237 provides that the “consumer has the right to select the motor vehicle repair facility of his or her choice and prohibits an insurer that issues a motor vehicle insurance policy that covers repairs to a motor vehicle from:

1) requiring that repairs must be made by a particular contractor or repair facility as a condition of that coverage; or

2) failing to initiate or conclude with due dispatch an investigation of a claim for repairs on the basis of whether the repair will be made by a particular contractor or repair facility.”

No hearing has been scheduled to date in the Assembly.

To view the full text of this legislation, visit ASA’s legislative website at www.TakingTheHill.com.

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