East Bay Democrat Mary Hayashi is apparently carrying a bill for insurance companies, which consumer advocates say will help insurance companies steer California car accident victims to auto repair shops of their choice. The bill at issue here AB 1200, which deals with a consumer protection statute that prohibits insurers from "steering" consumers to the insurance company's preferred shop. This bill failed by two votes in the California Senate August 24 before gaining reconsideration last week. The bill has now passed the Senate could be headed to a vote in the Assembly very soon, according to a news report in the East Bay Citizen.

Some Questions About the Bill

What does this bill mean for consumers? What does it mean to you and me? Basically, under this bill, insurance companies will gain the right to force consumers to repair shops that install substandard parts, padding insurance company profits while consumers are left with ill-fitting auto replacement parts.

Current law limits the insurance industry practice of advocating a certain garage to customers. The downside to giving the insurance industry this power is of course the abuse of this power, which we know, is very likely to happen. Insurance companies will often push customers towards shops of their own choice and in some cases send consumers to garages that provide cheaper and shoddy workmanship including generic part replacements that can void warranties and have serious auto product defects. These types of agreements with insurance companies can of course give garage owners the incentive to cut corners and increase their profits while the consumer gets shortchanged.

According to the East Bay Citizen's article, Hayashi received $8,000 in campaign contributions from various insurance interests led by the Personal Insurance Federation of California. These funds will no doubt, help strengthen her campaign in the race against Senator Ellen Corbett next year.

Putting Profits Over People

Our friends at the Consumer Attorneys of California (CAOC) are opposed to this bill and I agree with them. I have a few questions here. Why is Hayashi, an official elected by the people, carrying a bill that obviously benefits insurance companies and does nothing for the consumers--the voting public that put her in office? Whose side is Hayashi on?

Personally, I would not want anything but original manufacturers' replacement parts put in my car when it's being repaired. I do not want aftermarket parts in my car that can fail or malfunction. In fact, a defective auto part can cause or contribute to a serious car accident that can result in devastating personal injury to the vehicle's occupants. This bill, in my opinion, will take away the rights of consumers and put more power in the hands of insurance companies. And that's the last thing we need right now.

The BISNAR|CHASE personal injury law firm is not representing any of the parties mentioned in this article at the time the article was posted. Our source for the facts is cited in the article. If you were involved in this incident or a similar incident and have questions as to your rights and options, please contact us or another reputable law firm. Do not act solely upon the information provided herein. Get a consultation. Most of the best law firms will provide accident victims a free consultation.

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