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BAR targets change to authorization wording on repair orders

“If you think shops should not be responsible for insurance/third-party communications or notifications to customers, please speak up!” states CAA

Rancho Cordova, Calif.—The Bureau of Automotive Repair (BAR) has proposed new wording for authorizations, the California Autobody Association (CAA) reports. This is because “in recent years, the Bureau has received many consumer complaints resulting from third-party payors notifying repair facilities of such adjustments to the coverage amounts without consumers simultaneously receiving notification of these adjustments.”

This appears to be in relation to short pays and denials from insurers where shops charge the shortfall to the customer. 

The new proposed wording would be:

“This estimate is for repairs to meet vehicle manufacturer and industry standards. Any agreement you have with a third-party payor of the final repair bill may be adjusted based upon policy provisions, resulting in you becoming responsible for an additional portion of the cost of repair beyond any deductible contained within the policy. You will be notified by the insurer of any such adjustments.”

CAA states, “If you think shops should not be responsible for insurance/third-party communications or notifications to customers, please speak up!”

To provide comments and feedback, email BAR directly to Holly.Helsing@dca.ca.gov and Kayla.Shelton@dca.ca.gov

https://www.bar.ca.gov/regulatory-actions

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