ausauto News Article

Mitchigan bans insurer-owned shops

The Michigan House of Representatives has passed a bill that prohibits insurance companies from owning repair facilities in Michigan.

An amendment was also accepted to the legislation that prohibits insurers from developing a list of preferred shops or in any other way conveying to insured vehicle policyholders information regarding which repair facility they should use for vehicle repairs.

The Automotive Service Association (ASA) has been working with ASA-Michigan for passage of this legislation for some time.

The bill was introduced in May of 2007.

"Collision repairers across Michigan have worked for a long time to achieve insurer-owned shop legislation," said Bob Redding, ASA's Washington, D.C., representative.

"Michigan legislators have heard the concerns of collision shop owners. Insurer-owned shop legislation has been tested all the way to the U.S. Supreme Court with the Texas insurer-owned shop law.

"This bill is good for consumers, small businesses and jobs in local communities," said Bob.

-Source CollisionWeek.