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Tax Increase Would Worsen Auto Insurance Rates for Millions of MI Drivers, Says MI Chamber of Commerce The Snyder Administration and some state lawmakers are flirting with the idea of eliminating a tax credit that currently helps offset the costs associated with covering individuals who are hurt in accidents caused by uninsured drivers. This move would worsen already high auto insurance rates for millions of Michigan drivers and likely drive up the number of uninsured motorists, says the Michigan Chamber of Commerce. “This is an unfair targeting of an industry that provides thousands of good, stable jobs across the state and will result in a tax increase on Michi-
gan drivers that are actually following the law,” said Tricia Kinley, Senior Director of Tax & Regulatory Reform for the Michigan Chamber. “The State Legislature has failed to act on measures to address the underlying costs of high auto insurance premiums,” added Kinley. “The proposed car insurance tax hike will only make a difficult situation worse for Michigan’s motorists.” “The Michigan Chamber has strong concerns with this ‘car insurance’ tax hike,” noted Michigan Chamber President & CEO Rich Studley. See MI Auto Insurance, Page 9
MO House: Uber Must Insure Drivers At All Times
of only a few states not to have addressed this important insurance issue. “By the end of 2015, a total of 29 states had enacted laws to protect not only their drivers, but their passengers and the public, by closing insurance gaps that left drivers and the public vulnerable in an accident,” Shull said while presenting his measure on the floor. “This talks about the insurance issues to make sure the public is protected in case of an accident,” State Representative Bob Burns, who also supports the bill, said. The clarification was applauded by insurance agents, who have not had See Uber Insurance, Page 21
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A bill passed by Missouri’s House would make Uber liable for accidents not involving passengers. According to the legislation, ridesharing companies like Uber must provide their drivers with commercial coverage at all times when the company app is switched on. That means Uber is liable for accidents not involving passengers if the driver is actively looking for customers. Previously, a gap existed between personal insurance—which covers the time period before the app is switched on—and commercial insurance, which is triggered once a driver accepts a passenger’s ride request. In passing the bill, Noel Shull (R-Kansas City) said Missouri is one
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Indiana Moves Forward on GM-Written Bill To Close Auto Sales Loophole, Sponsor: “Not About Tesla” Indiana is seriously considering legislation that could lock Tesla out of the state—with a real possibility that Tesla will be prohibited from holding a dealer license in the state after 2017. The Indiana Senate Committee on Commerce & Technology recently held a hearing on the bill in question —HB1254/Amendment 3, authored by GM—and held a follow-up meeting on February 25th, at the Capitol building. The bill, authored by Rep. Kevin Mahan, R-Hartford City, could ban auto manufacturers from selling directly to consumers. The bill seems designed to shut down Tesla, the manufacturer of all-electric vehicles whose direct sales strategy runs counter to the traditional franchise dealer model. Tesla operates a showroom at the Fa-
shion Mall at Keystone. The House on Feb. 2 passed a version of House Bill 1254 that would send the issue to a study committee. But a proposed amendment to the bill would bypass a study. It “provides that a dealer license issued to a manufacturer expires after 30 months,” causing Tesla’s dealer license to expire in 2018. “It’s not about Tesla. It’s about a level playing field,” Mahan said. “Tesla just happens to be the only manufacturer in the state working under this situation. But the thing is, with the technology forthcoming, not only in the United States, you could have another manufacturer pop up any time. So I’m trying to close this loophole.” Indiana lawmakers are pushing the bill as Tesla is planning to unveil a See Indiana Loophole, Page 20
NABR Launches New VRS Labor Rate Survey for Luxury Brands and Special Vehicles
National AutoBody Research (NABR) announced in March the launch of the new VRS Labor Rate Survey for Luxury Brands and Special Vehicles. Intended for collision repairers who work on highline vehicles and have luxury brand manufacturer certifications, the online survey is free and is accessible on the NABR website. Through the survey and its VRS technology, NABR measures and reports the market-based labor prices collision repairers charge for working on luxury brand vehicles, such as Audi, Bentley, Mercedes, or Tesla, for example, as well as special vehicles such as the new Ford F-150 or Nissan GT-R. “This new survey fills a large gap in collision repair pricing information and enables a new level of pricing sophistication for repairers,” said Sam Valenzuela, president of NABR. “Previously, there was no easy way for a repairer to know what competitive market labor rates were for working on luxury and special vehicles, or to know whether their price was above or below market.”
“The significance of this new survey and new pricing data cannot be overstated,” said Eric McKenzie, director of body shop operations for Park Place Dealerships, which includes Park Place Bodywerks in Dallas, TX. “This is a real breakthrough for the industry, helping us all understand market prices nationwide for repairing highline vehicles. Intuitively, shops know they cannot charge standard door rates for repairing these luxury brands, given the tremendous investment required to achieve those manufacturer certifications. Yet, it is not really clear what the market price is either, so this new VRS survey will shine light on that topic, to everyone’s benefit.” Any collision repair owner or general manager may request a free, no-obligation demonstration of the VRS by contacting Sam Valenzuela, president, National AutoBody Research, 913-226-6550, Sam@National AutoBodyResearch.com. You can also visit www.National AutoBodyResearch.com for more information.
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