WASHINGTON (June 16, 2003) — Colorado Gov. Bill Owens signed a bill prohibiting insurance companies from requiring their claimants to go to a particular repair shop for repairs, the Automotive Service Association said.
Introduced by state Rep. Joe Stengel, R-Littleton, House Bill 1253 encourages competition and prohibits unfair and discriminatory insurance practices, ASA said. Under the bill, insurers can't force or “induce by incentive” a claimant to use a particular repair shop. In addition, the anti-steering bill says insurance companies can't use disincentives to discourage use of a specific shop.
“The Automotive Service Association supported this legislation, and we are very pleased to see Gov. Owens sign it,” said Bob Redding, the ASA's representative in Washington. “The new law will foster competition and free trade within Colorado's automotive aftermarket industry.”