Louisiana House Bill HB437

Louisiana 2019 Regular Session

• Introduced: 3/29/19
• Refer: 3/29/19
• Refer: 4/8/19

Caption

Provides for motor vehicle repair estimates by insurers

Impact

The implementation of HB 437 aims to reinforce consumer protection within the automotive repair industry. By requiring personal inspections, the bill seeks to eliminate discrepancies in repair assessments that could arise from photographs or incomplete descriptions of damage. The requirement for insurers to obtain signed acknowledgments from clients regarding the use of non-OEM aftermarket parts further enhances transparency, allowing vehicle owners to make informed decisions about the repairs on their vehicles.

Summary

House Bill 437 introduces significant changes to the way motor vehicle repair estimates are handled by insurers in Louisiana. The bill mandates that all initial repair estimates be obtained through personal inspections rather than relying on photographs or telephone communications. This is designed to ensure a more accurate assessment of vehicle damage before repairs are initiated. Additionally, the bill stipulates that insurers must disclose to vehicle owners that there is no requirement to submit photographs or videos for obtaining repair estimates, which is intended to protect consumers and clarify the estimation process.

Sentiment

The sentiment surrounding HB 437 appears to be generally positive among consumer advocacy groups, who view it as a necessary measure to safeguard consumers from potential conflicts of interest and sub-par repair practices. Proponents argue that the bill enhances accountability within the insurance and automotive repair industries, while critics may see it as an additional obstacle for insurers who often depend on quicker appraisal methods. Nonetheless, the overall focus on consumer rights seems to resonate well within legislative discussions.

Contention

Notable points of contention regarding this bill include concerns from some insurers about the increased operational burden it may impose, given that personal inspections could slow down the claims process. Insurers may argue that this requirement could lead to higher costs for policyholders and hinder the efficiency of the claims process. Furthermore, the added obligation to provide disclosure regarding non-OEM parts may lead to debates over the quality and safety implications of such aftermarket components.