Property Casualty Insurers Urge Gov. McKee To Veto Autobody “Blank Check” Markup Legislation That Will Likely Drive Repair Costs Even Higher For RI Drivers

“Industry standard markup” language in H-6324 / S-870 will likely lead to even higher repair costs for Rhode Island drivers who already pay the highest autobody repair costs in the nation.

PROVIDENCE, R.I. – The American Property Casualty Insurance Association (APCIA) is urging Governor Daniel McKee to veto legislation (H-6324 / S-870), that if allowed to become law, will likely drive the cost of auto repairs even higher for Rhode Island drivers who already pay the highest autobody repair costs in the nation. The legislation would allow the autobody industry to charge undefined “industry standard markup” fees in the areas of estimates, materials, and sublet services. With an average repair cost of $4,500, even a 10% “industry standard markup” could end up costing Rhode Island drivers an additional $450. As there is no definition of or limit to the “industry standard markup” in H-6324 / S-870, additional costs could be significantly higher.

“H-6324 and S-870 would allow the autobody industry to pad their profits at the expense of Rhode Island drivers who already pay the highest auto repair cost in the nation,” said Frank O’Brien, Vice President of State Government Relations for APCIA. “This legislation gives the autobody industry the legal right to pad their bills via what amounts to a blank check ‘industry standard markup’ fee. No other state in the country does this. Higher repair costs will also put upward pressure on auto insurance premiums. We’re urging Governor McKee to say enough is enough to special interest autobody industry legislation and to stand up for Rhode Island drivers by vetoing H-6324 / S-870.”

For a detailed discussion of the language contained in H-6324 / S-870, read Frank O’Brien’s written testimony before the Senate Judiciary Committee.