Glass-Repair South Carolina Bill Ushered Into Law

Steering is a hot-button issue for a few states, and South Carolina is no exception. In June, South Carolina Governor Haley gave his stamp of approval and signed a bill into law. It most directly applies to car glass repair and the insurance company’s practice of referring you to preferred repair shops.

That is what steering is considered: directing or steering a policyholder toward a list of preapproved or preferred businesses. HB 4042 will allow policyholders to keep their autonomy when deciding where to go for their glass repairs.

Perhaps there is a repair shop where the policyholder knows the owner. Perhaps there is one that is conveniently nearby. Maybe, a given repair shop has the best rates in town. Whatever the case may be, HB 4042 will see to it that policyholders have the option of choosing these glass repair shops.

Insurance companies will be allowed to refer policyholders, however, if they don’t have an repair shop option listed when they file a claim. In addition to this provision, insurers will be required to treat out-of-network glass repair shops fairly by offering them a reasonable rate. Policyholders will be responsible for any differences between what the insurer offers, and the amount the repair shop charges.

Supporters and Critics states that Congress strongly supported the bill, having passed in the House of Representatives 104-1. It should help policyholders get the best deals when it comes to auto glass repairs.

However, there are critics to HB 4042. The Property Casualty Insurers Association of America has spoken out against the law. They suggest that in-network businesses are there to lower costs, therefore extending the savings to policyholders.

Bob Passmore, PCI senior director of personal lines said, “Some companies have chosen to use these kinds of programs because they feel that using them will deliver a better claims experience for their customer and enable them to compete for business in the extremely competitive auto insurance marketplace.”

Rhode Island and Kentucky have also sought to address this issue. Keep up with new auto insurance laws in your state by visiting our website.

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