"NAMIC extends its appreciation to Governor Lincoln Chafee for his leadership in vetoing H-7782 Sub A that would have created a new private right of action for auto body shops and limit the circumstances in which a vehicle could be declared a total loss. Both measures would have led to increased costs and would have only benefitted auto body shops by driving up both repair and litigation costs at the expense of consumers.
"The bill represented special interest legislation at its worst. The circumstances under which the bill was passed by the House and Senate, in the waning hours of the legislative session and with substantial bipartisan opposition, suggest that a number of legislators recognized it as such.
"No other state has a statutory provision that in any way resembles this, so the bill would have made Rhode Island an extreme outlier in this area. NAMIC believes that, if this bill had been enacted, Rhode Island's already high automobile repair costs would increase dramatically, as would litigation initiated by auto body shops against insurers. The result would be higher system costs that would be borne by Rhode Island drivers."
Contact: Lisa Floreancig
Director of Communications | State & Policy Affairs
Posted: Tuesday, June 26, 2012 1:23:02 PM. Modified: Saturday, July 28, 2012 4:13:06 PM.
317.875.5250 - Indianapolis | 202.628.1558 - Washington, D.C.
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