Kentucky, United States — The U.S. state of Kentucky has announced new laws addressing fraud in the auto glass repair industry.
These new laws are aimed at deceptive activities like overcharging, unnecessary repairs and the use of substandard materials while addressing transparency and accountability in the industry.
Auto glass providers in the State are prohibited from assigning rights or benefits under insurance policies, further regulating businesses from offering consumers or insurance providers incentives in exchange for repairing auto glass claims. Auto glass shops must also get an insurance claim number or waiver of insurance prior to contracting jobs.
Additionally, auto glass repair facilities must provide clear and detailed estimates to customers, disclose all charges upfront and obtain written consent before executing any repairs. They must also inform customers if their car has advanced driver assistance system (ADAS) capabilities and explain whether their vehicle requires calibration.
Kentucky lawmakers work to create the legislation with the National Insurance Crime Bureau (NICB), an organization aimed at combatting insurance fraud.
“This new law will help weed out unscrupulous operators,” said Eric De Campos, NICB senior director of government affairs. “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 customer interests.”
NICB advocated for the Kentucky law after Florida passed a prohibition on the assigning of benefits in the state. In 2020, more than 27,000 lawsuits in Florida claimed auto glass fraud.
