What's happening
This bill prohibits insurers from imposing pricing caps on auto repair claims and requires full restoration of vehicles at no extra cost if the insurer recommends a repair shop.
Why it matters
Prevents insurers from enforcing cost limits. on specific elements of auto repairs (labor, parts, paint, materials), which could lead to higher claim payouts and potentially higher premiums, but also ensures customers are not left with unpaid repair costs due to arbitrary caps.
Requires claims to be negotiated by a licensed appraiser. with the policyholder or their representative, which may create more transparent and possibly fairer settlements, reducing insurer control over the repair process.
Mandates full restoration of vehicles at no extra cost. (beyond stated policy deductions) if the insurer recommends a repair shop, giving consumers more confidence that insurer-recommended shops must deliver complete repairs without hidden expenses.
Creates accountability for insurers. by obligating them to pay for repairs at a shop chosen by the claimant if the insurer’s recommended shop fails to restore the vehicle properly, strengthening consumer protections and incentivizing insurers to recommend only reputable repair facilities.
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Who cares
Headline styles
Protect Car Repair Choices
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to insurance
- Referred to insurance
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
937
2025-2026 Regular Sessions
IN ASSEMBLY (Prefiled)
January 8, 2025
Introduced by M. of A. MAGNARELLI -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to collision or comprehensive coverage on motor vehicles
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 2610 of the insurance law is amended by adding a new subsection (d) to read as follows:
(d)(1) No insurer in processing any such claim, shall limit the payment of such claim for damage to a motor vehicle repair based on pricing caps for labor, parts, paint or repair materials. All elements of such a claim for damages shall be negotiated with the insured, or their designated representative, by a duly licensed appraiser.
(2) If a recommendation or suggestion of an automotive repair facility is made by the insurer, and accepted by the claimant, the insurer shall cause the damaged vehicle to be restored to its condition immediately prior to the loss at no additional cost to the claimant other than deductions stated in the policy. Should the insurer fail to restore the vehicle to its condition immediately prior to the loss, the insurer shall at no additional expense to the claimant cause the vehicle to be restored to its condition immediately prior to the loss at a shop of the claimant's choice.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to all policies and contracts issued, renewed, modified, altered or amended on or after such effective date. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01288-01-5
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.