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Letter to the Editor
Friday October 1
California Passes Law That Prohibits Progressive Insurance Concierge Program
Governor Arnold Schwarzenegger took action on September 30th by signing AB 1079 (Bermudez), which, among other things, would prohibit programs such as Progressive’s Insurance Concierge Service in California. This represents, according to a California Autobody Association (CAA) press release, a major victory for consumers and auto body repair shops in the State.AB 1079 would define a customer as the “person presenting a motor vehicle for repair and authorizing the repairs to that motor vehicle”. Furthermore, the law specifically states, “the customer shall not mean the automotive repair dealer providing the repairs or an insurer involved in a claim that includes the motor vehicle being repaired or an employee or agent or a person acting on behalf of the dealer or insurer.”
The law would prohibit the current Progressive Concierge Program and others like it, which encourages customers to drop off their vehicles at Insurance Centers, pick up a rental car, and leave, while allowing the insurer to “step into the shoes” of the customer and to make all the critical repair decisions including where the car is to be repaired.
“Our members are very concerned about any insurance program that takes away consumer rights and limits the decision making process for consumers, and we are pleased with Assembly Member Bermudez efforts in this regard,” said David McClune, CAA Executive Director.
Jack Molodanof, CAA General Counsel and Lobbyist said, “This new law in California puts the final nail in the coffin for the Progressive Concierge Program, as we know it.”
The bill also raises issues as to whether it prevents insurance company owned body shops from repairing their own insured vehicles.
The California Autobody Association (CAA) is a not-for-profit organization comprised of approximately 1000 collision repair business and associated professionals belonging to the collision repair industry.
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