Anti-Steering legislation introduced in Nebraska and Missouri

Mar 10, 2004

Owners of body and glass repair shops in Nebraska are voicing concern over alleged steering.  After complaints from the Nebraska Auto Body Association that some customers are led to believe they have no choice, the Nebraska Department of Insurance sent out a reminder to insurers suggesting that each company review its claim procedures.  Within a couple of months, the Nebraska Auto Body Association will offer brochures that body shops can pass out to customers telling them their rights regarding where they can go to have their vehicles fixed.  Also, a bill introduced in the Nebraska Legislature would require that insurance companies inform policyholders of their rights to choose repair shops.

New anti-steering legislation has also been introduced in the state of Missouri.  House Bill 1528 includes language that an insurer cannot require that a motor vehicle be repaired at a specific automotive repair shop.  Furthermore, an insurer cannot recommend a repair shop to the consumer unless they have been notified in writing of their rights to select a shop or if a referral was requested.  If a recommendation is accepted by the consumer, the insurer must also cause the vehicle to be restored to its pre-loss condition at no additional cost to the consumer.  Finally, the insurer must read and send to the consumer a statement containing specific language concerning their right to choose.

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