Archive for September, 2008
California Governor Signs SB 1371 , Auto Paint Capping Bill
This bill prohibits insurers from
capping paint and materials charges, as defined.
BILL NUMBER : S.B. No. 1371
AUTHOR : Correa
TOPIC : Insurance: automobile repair capping.
TYPE OF BILL :
Inactive
Non-Urgency
Non-Appropriations
Majority Vote Required
Non-State-Mandated Local Program
Non-Fiscal
Non-Tax Levy
BILL HISTORY
2008
Sept. 28 Chaptered by Secretary of State. Chapter
526, Statutes of 2008. Sept. 28 Approved by Governor.
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THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares the following: (a) Today, methodologies that are accepted by both automobile repair shops and insurers are available to determine the cost of paint and related materials. These 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 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 accepted industry methodologies is ignored by an insurer. For example, an 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 accepted industry methodologies. (c) Pricing agreements involving discounts that are entered into voluntarily between an automobile repair shop and an insurance company constitute neither "capping" nor an accepted industry methodology used in determining paint and material charges. SEC. 2. Section 758.6 is added to the Insurance Code, to read: 758.6. Insurers shall not engage in capping. For the purposes of this section, "capping" means offering or paying an amount that is unrelated to a methodology used in determining paint and materials charges that is accepted by automobile repair shops and insurers.
European Commission To Require Daytime Running Lights On New Vehicles From 2011 On..
In an effort to decrease collisions and make the roads safer, Daytime running lights will be required on all new vehicles from 2011 on.
CA Assemblywoman Aims To Protect Consumers From “Parts Switching”…
This article from California Assemblywoman Wilmer Amina Carter addressed the issue of auto repair fraud. A BAR study in 2003 showed 40% of consumers were victims of auto repair fraud.
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With Dealerships Closing, Some Turn To Auto Body Repair…
With tough times for auto dealerships on the sales end, some such as the Harte Auto Group in Connecticut are converting part of their dealerships to auto body repair facilities to maintain revenue.
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No More Texting While Driving In California..
The Governor of CA today signed legislation banning the use of text messaging while driving.
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Auto Claims Industry Parts Stats
Here’s a current update of the auto claims industry parts usage statistics over the past 30 days….

Data source: © 2008, AutoClaims Direct, DirectLink
Results ….. Are DRP’s Worth It??
We conducted an online survey over the past week and the results are in. Are DRP’s worth it? Only 33% of the people who participated felt DRP’s are the way to go. The rest felt Direct Repair Programs are not worth the time or should only be used in conjunction with the use of field appraisal staff.

Consumer Groups Win Wreck Registry Ruling…
Under a ruling by a federal judge, insurance companies and salvage yards will be required by law at the end of March 2009 to provide information on vehicles damaged by floods, fires or crashes that are total losses.
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Federal Government To Unveil Title Wash Rules…
The U.S. government unveiled new rules that may reduce the instances of reselling total loss vehicles with a clean title.
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