The Connecticut General Assembly’s transportation committee has recently approved Senate Bill 288 (the “Bill”), which prohibits auto insurers from recommending, requesting or requiring policyholders use certain auto repair facilities. The Bill also prohibits insurers from providing economic advantages to policyholders on the basis that they use certain facilities.
The Auto Body Association of Connecticut, Connecticut Attorney General Richard Blumenthal and other proponents of the Bill argue that the legislation will give insureds the freedom to choose auto repair shops. Opponents of the Bill, such as the American Insurance Association and Property Casualty Insurers’ Association of America, argue that this Bill, among other things, is anti-competitive and would only increase the cost of repairs as the Bill would eliminate an insurer’s ability to negotiate favorable repair rates.
The Judiciary Committee has passed the Bill without any changes. The Bill has now moved to a final floor vote. We will monitor and provide updates regarding the Bill’s movement.
