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Auto Repair Shop Bill Vetoed by RI Governor

Blogs, Insurance Coverage

On June 26, 2012, Rhode Island Governor, Lincoln Chafee, vetoed H-7782A, the bill containing the Motor Vehicle Property Damage Claims Settlement Act. 

In vetoing the bill Governor Chafee expressed concern that passage of the bill would have hurt Rhode Island consumers by raising auto insurance rates and interfering with existing contract agreements. The decision was applauded by the American Insurance Association (“AIA”). The AIA commended the Governor’s commitment to consumers and policy holders, noting that no other state allows auto-body shops to set non-negotiable rates and passage of the bill would have increased repair costs and increased litigation.