Consumer Watchdog Calls Out State Farm For Power Grab Legislation That Undermines Consumers Seeking Auto Crash Repairs and Threatens Their Safety, Asks For Its Withdrawal
Summary
In a letter to Burke, Michael Mattoch, Consumer Watchdog Counsel and Advocate, warned that the bill AB 1679, which is before the Assembly Appropriations Committee Thursday, is being pushed by State Farm under false pretenses."Its true intent, which is, more than likely, not how it has been represented to you, is to allow State Farm to deny victims of crashes adequate repairs for their vehicles as required per manufacturer specifications," Mattoch wrote.AB 1679 repeals recently enacted Department of Insurance (CDI) voluntary labor rate survey guidelines; and eliminates a consumers right to select an auto body shop of their choice to repair their vehicle.CDI issued regulations to clarify and complement existing law to prevent such steering and ensure unfettered consumer choice of repair shops and more timely damage inspections."If enacted, AB 1679 (Burke) would allow State Farm - and all other insurers - to provide consumers with only one choice: You may go to one of our shops, or your claim will receive heightened scrutiny, it will take more time to fix, you will pay more, and it will be far less convenient.