Florida Windshield Bill Moves Closer to Law; Amendment Allows Managed Repair Plans

Bills that would ban assignment of benefits for windshield repairs moved a step closer to becoming law this week after they passed their third and final committee stops. A late amendment to the bills would bar insurance companies and agents from recommending repair shops and would allow managed repair plan endorsements.

Senate Bill 1002, sponsored by state Sen. Linda Stewart and others, was approved unanimously by the Senate Rules Committee Tuesday. The companion bill, House Bill 541, was passed by the House Commerce Committee, setting the stage for a floor vote in both chambers in the next week or so.

Both bills would end AOBs in windshield repair and would forbid shops from offering gifts to auto owners, practices that insurers have said have grown out of control in recent years and have led to a surfeit of claims lawsuits. A coalition of insurance companies, consumer advocates and anti-fraud advocates have pushed for the legislation.

“In Florida, a law meant to encourage drivers to repair or replace damaged windshields is being exploited by glass repair shops and attorneys, leading to exorbitant legal fees churned out by abusive litigation,” the FixtheCracksFL.com said in a statement. “What started as a small regional problem with a few lawyers and auto repair shops proliferated throughout the state as more unscrupulous actors looked to cash in.”

The House bill was amended in the House Commerce Committee late last week and the wording was added to the Senate version Tuesday. The amendment would bar insurers and agents from “steering” drivers to certain repair shops and would require insurers to provide the names of at least two shops, but would also allow carriers to offer discounts to policyholders in exchange for policies that have managed repair arrangements.

The amendment was approved without objection by the House and Senate committees.

Topics Florida