American Property Casualty Insurance Association
  • Staff Contact: Brooke Kelley     
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Contact:

Brooke Kelley-Hunt

Phone:

847-553-3671

Email:

Brooke.kelley0hunt@pciaa.net

 

 

FOR RELEASE ON RECEIPT

March 4, 2014

Auto Body Repair Legislation that could Increase Costs for Consumers

ANNAPOLIS, Md. – The Maryland Senate Finance Committee is holding a workgroup meeting today to discuss Senate Bill 487, which could hurt consumers by limiting insurers’ ability to manage auto body repairs and control costs. The bill would prohibit insurers from requiring an auto body repair shop to use a specific vendor or process for obtaining repair parts and materials. Additionally, the bill would prohibit insurers from requiring the use of aftermarket crash parts on vehicles that are less than three years old. The following statement regarding the legislation can be attributed to Oyango Snell, State Government Relations Counsel for the Property Casualty Insurers Association of America (PCI).

“PCI and our members encourage lawmakers to closely examine the possible negative ramifications for consumers that could result if Senate Bill 487 passes. This legislation not only imposes severe restrictions on how insurers manage the auto body repair process and deliver a quality repair experience, but it also could hurt consumers by increasing the costs associated with getting vehicles repaired and increasing the cost of insurance premiums. Currently Maryland’s average collision premium ranks 13th highest in the nation and that ranking could rise by forcing more repairs to always be made with original equipment parts, which can be as much as 60 percent more than aftermarket parts.

“We believe lawmakers will see that this bill limits consumer choice and stands in the way of insurers providing high quality repairs at reasonable costs for their constituents.  We are urging lawmakers to table this legislation and continue to fight against higher costs for consumers.”

PCI is composed of more than 1,000 member companies, representing the broadest cross-section of insurers of any national trade association. PCI members write over $195 billion in annual premium, 39 percent of the nation’s property casualty insurance. Member companies write 46 percent of the U.S. automobile insurance market, 32 percent of the homeowners market, 37 percent of the commercial property and liability market, and 41 percent of the private workers compensation market.

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