The Collision Repair Association of California (CRA) drafted an opposition statement to AB 1200, an insurance industry sponsored bill that would weaken California’s anti-steering law. The letter is addressed to Ron Calderon, chairman of the Senate Banking, Finance and Insurance Committee (SBFIC), and signed by Allen Wood, executive director of CRA.

Wood also is asking CRA members to fax a letter of opposition to AB 1200 to the SBFIC at (916) 327-7093. The bill is slated to be heard by the committee at 1:30 p.m. July 1 in Room 112 of the State Capitol in Sacramento, Calif. To read a previous article about CRA’s opposition to AB 1200, click on steering in California.

CRA’s statement says that its board voted to strongly oppose AB 1200 and to request the adoption amendments that would support consumer choice that’s now protected under existing law. The bill as currently drafted endangers the consumer’s right to select an automotive repair dealer when repairs are subject to coverage under an insurance policy.

The statement emphasizes the need for the amendments to AB 1200 by saying, “Steering is illegal in California. A few weeks before this bill was introduced, the Department of Insurance filed a show cause order against GEICO, alleging, in part, that the insurer had steered claimants to GEICO-favored shops even though the claimants had selected a shop.”

To read CRA’s entire statement to SBFIC, click here.