Proposal would protect claimants’ choice of motor vehicle repair shops

Insurers would have to let claimants choose a repair shop and could not pressure them to use a particular one. This applies to people seeking repairs, whether they are insured or making a claim against another person’s insurer. If the claimant asks, the insurer would have to provide a fair list of nearby or convenient shops that meet its criteria and say the claimant may choose any shop. Insurers would pay reasonable and necessary costs for covered damage, minus any deductible, up to the market price. An insurer would not be liable for work by a shop outside its list. The proposal would take effect on passage and approval and apply to motor vehicle insurance claims made on or after that date.

Insurers, their producers, and adjusters would not be allowed to disregard certain repair guidance. The rule covers motor vehicle policies issued or renewed in Montana and applies to repair instructions and safety inspections recommended by the vehicle’s maker. The rule would not restrict the use of alternative repair parts. The proposal would take effect on passage and approval and apply to motor vehicle insurance claims made on or after that date.

Insurers with direct repair programs would have to follow rules about participating shops and claimant lists. These rules apply to insurers that have direct repair programs with auto body repair shops. An insurer could limit program participation to shops meeting its criteria, but could not unfairly limit the number of participating shops. An insurer would not have to establish a program in a market where it lacks enough policyholders to support one. The proposal would take effect on passage and approval and apply to motor vehicle insurance claims made on or after that date.