AN ACT CONCERNING MOTOR VEHICLE REPAIRS.

This bill limits what auto insurers can tell insureds with respect to necessary auto repairs. Specifically, it prohibits an auto insurer, and its agents and adjusters, from (1) requiring an insured to use a specific repair shop to perform auto repairs or (2) stating that repair work will be delayed or not guaranteed if the insured has repairs performed at a motor vehicle repair shop that is one which is not participating in the insurer's vehicle repair program.

The bill requires a repair shop to obtain a customer's written acknowledgement that he or she is aware of his or her right to choose the licensed repair shop that will repair his or her vehicle. It prohibits a repair shop from repairing a vehicle without this acknowledgment, which a customer may email or fax. The acknowledgement is in addition to, or may be part of, the customer's written authorization to perform work, which a repair shop must obtain by law before performing any repair work.

By law, a violation of any law or regulation that applies to its business as motor vehicle dealer or repairer licensee may result in a license suspension or revocation, a civil penalty of up to $ 1,000 for each violation, or both (CGS § 14-64).

*Senate Amendment “A” (1) repeals a duplicative acknowledgement requirement in another law for repair shops participating in an insurer's vehicle repair program; (2) prohibits an insurer from stating rather than “suggesting” that repairs will be delayed or not guaranteed if performed by a non-participating repair shop; and (3) changes the reference to “preferred” repair shops to those participating in the insurer's program.

Some automobile insurers enter into contracts with specific repair shops that agree to provide services to customers at a discounted price. A person may choose any shop for repairs, but the insurer might only guarantee repairs performed at a preferred shop.

By law, no one may operate a motor vehicle repair shop without a Department of Motor Vehicle-issued new car dealer's, used car dealer's, repairer's, or limited repairer's license (CGS § 14-52). A “motor vehicle repair shop” means a new car dealer, a used car dealer, a repairer, or a limited repairer (CGS § 14-65e).

“Repairer” includes any person, firm, or corporation qualified to conduct such business, having a suitable facility and adequate equipment, engaged in repairing, overhauling, adjusting, assembling, or disassembling any motor vehicle. It excludes a person engaged in tire repairs, upholstering, glazing, general blacksmithing, welding, and machine work on motor vehicle parts when a licensed repairer disassembles and reassembles the parts (CGS § 14-51(3)).

“Limited repairer” includes any qualified person, having a suitable place of business and adequate equipment, engaged in the business of minor repairs, including cooling, electrical, fuel, and exhaust system repairs and replacement; brake adjustments, relining, and repairs; wheel alignment and balancing; and shock absorber repairs and replacement. It excludes lubricating motor vehicles; adding or changing oil or other motor vehicle fluids; changing tires and tubes, including the balancing of wheels; or installing batteries or light bulbs, windshield wiper blades, or drive belts (CGS § 14-51(4)).

On April 9, the Senate referred the bill (File 241) to the Transportation Committee which reported out a favorable substitute on April 14. The new language removes the requirement that an auto insurer offer a premium discount on a policy issued, renewed, amended, or endorsed on or after October 1, 2009 covering a “private passenger motor vehicle” that has its complete vehicle identification number (VIN) etched on the lower corner of the vehicle's windshield and each side or rear window.

Yea

Nay

(03/10/2009)

Yea

Nay

(04/14/2009)