Less BMW repair choices – bad for you
Back in 2003 Congresswoman Jackie Speier drafted SB551 which banned the auto insurance companies from steering a consumer to one of their DRP shops. A DRP shop is one that has a contract with the individual insurance companies. Initially, that doesn’t sound too bad, right? Like your doctor has a contract with medical insurers, but, those contracts are highly regulated. The Direct Repair Programs/DRP contracts are not regulated and they encourage use of anything other than original manufacturer equipment to keep their costs down and their profits high. That is not good for the consumer.
Now, AB1200 comes along, written by Mary Hayashi (D) of Fremont that may undo all of the consumer protection that Congresswoman Speier and SB551 back in 2003 put into place.
AB1200 has great support from the Personal Insurance Federation of CA, which is comprised of the the major auto insurers in our State. This law is anti-competitive and would now “allow steering” to the insurance companies’ DRP shops. This is a major issue for anyone who drives a car! American consumers demand choice and we don’t need an insurance company to tell us where to take our car for repair after we have been involved in a collision. This is happening due to the lobbyists and the vast amount of resources that pour into our State from the insurance companies. They are trying to pull this off in the guise of “additional information” to the consumer. Bull. When did the insurance companies become benevolent?
Let our Governor know that this bill is anti-competitive and anti-consumer, and ask him to veto this bill that passed the Assembly on Sept.9th.