Incentives such as “free” steaks, that drive up insurance costs for auto glass repairs may soon be history in Minnesota if the legislature can reconcile the differences in the House and Senate versions of House File 2570.
According to the National Association of Independent Insurers (NAII), the house version of the bill allows insurers to treat auto glass repairs in the same manner as other auto body repairs. The bill repeals the current Department of Commerce price survey mechanism in favor of the more common fair and reasonable standard for a specific geographical area.
The Senate amended the bill to do away with auto glass dealer incentives. In addition, insurers that recommend glass vendors would be required to tell consumers that they have a right to go to any vendor of their choice.
“Auto glass repair costs have gotten out of control in Minnesota,” Laura Kotelman, counsel for the NAII, commented. “We are urging the House to accept the Senate amendments and pass this legislation. This bill addresses some of the factors that make Minnesota the most expensive state in the nation to get glass repaired.”
The debate over auto glass in Minnesota has been ongoing for many years. In the past, insurers were required to pay “all reasonable” costs, which was often interpreted as meaning whatever the glass shop determined was reasonable. In 2000, the legislature attempted to address the issue by putting in place a price survey method of resolving pricing disputes. However, this method did not prove to function as effectively as the glass repair shop or insurers had desired.
The Senate also passed Senate Files 3015 and 2638 that strengthen laws against insurance fraud and creates a fraud prevention division within the Department of Commerce.
“Taking a tougher stance on insurance fraud benefits consumers. The fraud prevention bureau will be able to better coordinate insurance fraud investigations and prosecutions. Strengthening the penalties for individuals that direct accident victims to fraudulent health care providers is a step in the right direction and will help to reduce insurance fraud,” Kotelman added.
Was this article valuable?
Here are more articles you may enjoy.
Project 2025 Plan to End NFIP Welcomed by Some, Rejected by Others in Insurance 
What Happened to Reinsurance ‘Class of 2023’? Hard Market Defies Age-Old Patterns. 
Hurricane Beryl Triggers Record Payout for Caribbean Insurer 
Deere Retreats From Diversity Measures After Online Attacks 
