LEGISLATIVE UPDATE

Back to Basics

by Sam Richie & Shannon K. Mitchell, AASP-MN Lobbyists

Fall is in full swing, and students are back at school, no doubt reviewing and learning foundational concepts. It’s also a good time for the industry to ground itself (and, most importantly, customers) in the most basic legal rights regarding auto repairs and insurance claims. Many of us are familiar with some or all of these rights but may not have the statutory language handy to cite.

The following is a non-exhaustive list of some of the most essential rights consumers have and the responsibilities required of auto insurance providers*. Of course, we know these statutes are not always followed, but they are the tools we currently have in dealing with insurance providers. Here you will find specific citations to the law as well as steps AASP-MN is taking to address these instances, along with opportunities for you to get involved.

Right to choose a vendor (prohibition on steering)

Insurance companies cannot require their policyholders to use a suggested repair shop or choose from an “in-network” provider. They cannot refuse coverage or advise against services at a particular shop, a practice known as “steering.” In fact, they have to notify policyholders that they have the right to select any shop. Once it is clear the policyholder has chosen a shop, the insurance company must stop making any effort to influence the policyholder’s choice of a repair shop. -Minnesota Statute 72A.201 REGULATION OF CLAIMS PRACTICES see Subd. (6) section (7)

Right to repair

Policyholders have a right to have their vehicles repaired to pre-accident condition, regardless of the repair shop they choose (see above). Pre-accident condition includes both “obvious and hidden damage

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