The American Property Casualty Insurance Association (APCIA) is concerned with two Rhode Island bills that could increase consumer auto costs.
The APCIA said the concern stems from H. 6324 and H. 6325, which the organization noted threaten to add costs related to parts, materials, sublet services, and a new industry standard markup loophole.
“House 6324 would effectively allow the autobody industry to use whatever part invoicing system they want, including several known to be open to potential manipulation, and an insurer would be required to pay without contest as long as an invoice is produced,” Frank O’Brien, vice president of Government Relations for the APCIA, said. “Even more concerning for consumers, it includes a broad but ambiguous list of services for which an auto body facility must be compensated in addition to a separate ‘industry standard markup.’ Together these changes translate to a blank check for the autobody industry to add exorbitant costs to an already overburdened system.”
Meanwhile, Harry Hall of Hall’s Garage in Scituate, R.I., and president of the Auto Recyclers Association of Rhode Island, said House Bill 6325 would ban the use of quality recycled parts Rhode Islanders rely on to repair their cars cost-effectively.
“Genuine recycled automotive parts sold by our members meet the highest standards of product assurance, quality control, and requirements for fit, finish, durability, reliability, and safety of the original equipment manufactured (OEM),” he said. “This legislation makes no sense.”
Hall said the bill would hurt small businesses and Rhode Island drivers who will be forced to pay higher costs for automobile repairs.