The end of auto claims as we know it?

The USDOT along with the Integrated Vehicle Based Safety System initiative believe that driver assistance technology systems can reduce accidents by over 1.8 million per year. The focus of the study is specifically rear end collisions. In Germany, there is currently collision avoidance technology being tested actively and in another posting, I provided a link regarding the results. While technology can decrease accidents, there will still be accidents any time the human factor is involved.

Click here for the full story.

California Paint Cap Bill SB 1371 Amended.

Last week in California, SB 1371 was amended. The new amendment is up for hearing next on 6/25/2008

SB 1371:

   Existing law prohibits insurers from engaging in specified acts
relating to automotive repair.
   This bill would prohibit insurers from capping paint and materials
charges, as defined.

Some of the highlights are:

(a) Today, methodologies that are mutually accepted by both
automobile repair shops and insurers are available to determine the
cost of paint and related materials. These mutually accepted industry
methodologies include manuals and estimating systems that set out
the refinish labor units required to paint a particular portion of an
automobile, such as a hood, fender, rocker panel, and so forth. The
paint and material charge is calculated by multiplying the refinish
unit times the refinish rate. Additional mutually accepted industry
methodologies that are available involve software programs, which
calculate the paint and materials charges.  
   (b) "Capping" occurs when the cost of paint and related materials
determined by any of these mutually accepted industry methodologies
is ignored by an insurer. For example, a mutually accepted industry
methodology determines a cost of seven hundred dollars ($700.00) for
paint and related materials, and the insurer, as a standard practice,
offers three hundred fifty dollars ($350.00), an amount that is
unrelated to the paint and material charges that would be determined
by any of the mutually accepted industry methodologies. 

Click Here to read the amended bill.