AIA Opposes New Regulations in Massachusetts

The American Insurance Association (AIA) is opposing several automobile insurance-related under consideration in Massachusetts. The legislation would place regulations around the repair of damaged automobiles, including repair parts, glass repair and service, labor rates, and replacement vehicle transactions.

Specifically, the legislation includes proposals that would prohibit glass replacement and repair vendors of insurance companies from also providing third party billing for that carrier. The bills would also limit the information that claims administrators can share with customers about available repair options.

“These proposals would disrupt many of the benefits consumers currently enjoy when dealing with repairs to their damaged vehicles while eliminating convenient and cost-effective programs," AIA Northeast Region VP John Murphy said in a statement. “With a competitive auto insurance system now effectively operating in Massachusetts, AIA believes that imposing restrictions on repair networks that are designed to provide choice to consumers and contain costs is counterproductive.”