Legislation that should speed up the repair process for insured vehicles by clarifying that insurance companies can retrieve automobiles from towing yards was signed into law last week, according to the National Association of Independent Insurers (NAII).
The NAII-sponsored bill, HB 2267, requires a towing company to release a towed vehicle to an authorized representative of the insurance company that insurers the vehicle. Currently, some towing yards only release a vehicle to the vehicle’s owner.
“The current situation delays the repair process and leads to higher costs,” said Sam Sorich, NAII vice president and western regional manager. “This new law will enable insurers to obtain vehicles more quickly to start on repairs. The new law will help insurance companies provide better service to their customers. At the same time, the law assures the towing yards that insurers have proper authorization to obtain vehicles.”
The bill will take affect 90 days after the legislature adjourns.
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