Kentucky takes steps to combat auto glass repair fraud with new law

Kentucky takes steps to combat auto glass repair fraud with new law | Insurance Business America

Motor & Fleet

Kentucky takes steps to combat auto glass repair fraud with new law

What will change with the new legislation in place?

Motor & Fleet

By
Jonalyn Cueto

The state of Kentucky has enacted new legislation to address rising concerns about fraudulent practices in the auto glass repair industry. The new law, S.B. 29, aims to protect consumers from deceptive activities, such as overcharging, unnecessary repairs, and the use of substandard materials. It also seeks to increase transparency and accountability within the industry.

The National Insurance Crime Bureau (NICB), a non-profit organization focused on combating insurance fraud, worked closely with Kentucky lawmakers to develop the legislation. Kentucky Senator Brandon Storm (R-KY) sponsored the measure, which was recently signed into law. According to a news release, the legislation mirrors a similar measure enacted in Florida last year.

“This law will help weed out unscrupulous operators who engage in fraudulent practices,” said Eric De Campos, senior director of government affairs at NICB. “By implementing critical consumer protections, as well as enhancing consumer education, the measure aims to create a more transparent and accountable auto glass repair industry that prioritizes the interests of consumers.”

Senator Storm echoed this sentiment, stating: “This new law in Kentucky represents a significant step forward in addressing auto glass repair fraud and protecting consumers from deceptive practices. The measure would also impose stiff new penalties and fines for violations of the law and repair shops found guilty of engaging in fraudulent activities would face license revocation, and possible criminal charges.”

The new law includes several provisions aimed at safeguarding consumers’ interests. Repair shops must now provide clear and detailed estimates to customers, disclose all fees and charges upfront, and obtain written consent before proceeding with any repairs. The legislation also establishes a mechanism for consumers to report suspected instances of fraud or misconduct, allowing authorities to take swift action against offending repair shops.

For further information on the law and its implications, consumers can visit the NICB website or contact the Kentucky Department of Insurance.

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