OLR Bill Analysis
AN ACT CONCERNING MOTOR VEHICLE REPAIRS .
This bill requires a notice in motor vehicle repair shops, on a repair appraisal or estimate, and on auto insurance identification cards informing customers of their right to choose the licensed repair shop that will fix their vehicles . The law prohibits an insurer, unless an insured agrees in writing, and an appraiser from requiring that a person use a specific repair shop .
EFFECTIVE DATE : January 1, 2009
CONSUMER NOTICE
Appraisals
The bill requires appraisals or estimates for automobile physical damage written on behalf of an insurer or a motor vehicle repair shop to include the following notice in at least 10-point boldface type :
NOTICE : YOU HAVE THE RIGHT TO CHOOSE THE LICENSED REPAIR SHOP WHERE THE DAMAGE TO YOUR MOTOR VEHICLE WILL BE REPAIRED .
Repair Shops
By law, repair shops must display signs showing labor and storage rates, informing customers of certain rights, and how to contact the Department of Motor Vehicle (DMV) . The bill requires every motor vehicle repair shop also to prominently display a sign in the area where customers place work orders that is in boldface type and reads as follows :
NOTICE : THE CUSTOMER HAS THE RIGHT TO CHOOSE THE LICENSED REPAIR SHOP WHERE THE DAMAGE TO HIS OR HER MOTOR VEHICLE WILL BE REPAIRED .
Insurance Identification Cards
By law, insurers must issue automobile insurance identification cards annually, in duplicate, for each vehicle insured . For private passenger motor vehicle insurance policies delivered, issued, or renewed beginning January 1, 2009, insurers must include the following notice on the identification cards in boldface type :
NOTICE : YOU HAVE THE RIGHT TO CHOOSE THE LICENSED REPAIR SHOP WHERE THE DAMAGE TO YOUR MOTOR VEHICLE WILL BE REPAIRED .
Licensed Repair Shop
By law, no one may operate a motor vehicle repair shop without a DMV 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)) .
Related Bill
The Transportation Committee reported out SB 288, which requires a similar consumer notice on appraisals . It also :
1 . prohibits an insurer from recommending, requesting, or requiring that a customer use a particular motor vehicle repairer,
2 . permits an insurer or appraiser to give a customer a list of repair shops near his or her home,
3 . requires insurers to pay the usual and customary labor rate (U&C) for vehicle repairs, and
4 . makes it an unfair or deceptive insurance practice not to pay (a) U&C or (b) by means that makes money immediately available .
COMMITTEE ACTION
Insurance and Real Estate Committee
Joint Favorable Substitute