New Arizona Bill Proposed for Auto Glass Repair and Replacement Practices (SB 1424)
Earlier in 2018, Arizona Senator David Farnsworth introduced an amendment to the state’s current laws regarding auto insurance company’s relationships with auto glass manufacturers. It is a prevalent issue in the state because the extreme heat makes windshield glass more susceptible to cracking when it comes into contact with a rock or other piece of debris. Under the proposed amendment, auto insurers would be unable to coerce or incentivize customers from using a preferred auto glass business. Additional considerations under the bill involve insurer inspections and fair pricing.
Contents of the Proposed Bill
People interested in reading the bill in full can view it online. Ultimately, the bill allows customers to choose which vendor they would like to get the replacement auto glass. The auto insurance company must pay the vendor a rate that is both reasonable and fair.
Another important provision of the bill is that the auto company must perform a detailed inspection of the broken auto glass within a reasonable amount of time. For the purposes of the bill, the insurance agency has a maximum of 24 hours to inspect the car after the initial claim is filed. Anything after 24 hours will be considered an unreasonable delay.
Auto insurance companies will not be able to engage in any behavior that could affect a driver’s decision as to what auto glass business to go to. This includes intimidation practices, such as threatening to deny coverage. However, it also pertains to incentives, such as offering gift cards exceeding in value of $100 or other rewards for choosing a certain company. This also includes the insurance company stating there will be expedited service for selecting a specific auto glass business.
There are also provisions in the bill related to how auto glass companies need to behave. For instance, the bill states it will be unlawful for an auto glass company to charge the insurance company more than the actual value of the services rendered. The auto glass businesses also cannot falsify the date of service as this can alter the amount of money an insurance company needs to provide.
Bill’s Impact on Arizona Citizens
If passed, the bill would provide Arizona residents with more options with where to get their replacement auto glass from. They will not be forced to go along with whatever their insurance providers recommend. This is not the first bill to go through the Arizona Senate related to the car insurance industry, and it certainly will not be the last.
