Georgia CommonsHB 1421: Insurance; prohibit improper steering to repair facilities under motor vehicle liability insurance policies
Last action February 25, 2026 · House Second Readers
A Georgia House bill would bar auto insurers from steering claimants to specific repair shops they have a financial stake in and require insurers to disclose a driver's right to choose any repair facility.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Introduced version, the latest LegiScan holds.
In plain language
Under current Georgia law, insurers are limited from requiring drivers to use a specific repair shop only when the driver could get the same repair cost elsewhere. This bill rewrites that rule (O.C.G.A. § 33-34-6) to give every claimant under a motor vehicle liability insurance policy the right to pick their own repair facility, and it bars insurers from requiring use of a shop the insurer has a financial interest in, such as ownership or a direct repair program agreement. Insurers could still recommend a repair shop, but only if they clearly tell the claimant they are not obligated to use it, that they can choose their own shop, that the covered payment amount will be the same regardless of which shop is used, and whether the insurer has a financial interest in the recommended shop. The bill also adds violations of this steering rule to the list of unfair claims settlement practices under O.C.G.A. § 33-6-34, and it directs the state Insurance Commissioner to write rules to carry out the new requirements.
What the bill does
- Gives every claimant under a Georgia motor vehicle liability insurance policy the right to select their own repair facility for covered repairs.
- Prohibits insurers from requiring a claimant to use a repair facility in which the insurer has a financial interest, such as ownership or a direct repair program.
- Bars insurers from suggesting that using or avoiding a particular shop could affect whether a claim gets paid, delayed, reduced, or repaired well.
- Requires insurers that recommend a repair shop to disclose the claimant's right to choose, the guaranteed payment amount, and any financial interest in the recommended shop.
- Adds steering violations to the state's list of unfair claims settlement practices, making repeated violations enforceable as a general business practice violation.
- Directs the Insurance Commissioner to create rules and regulations to implement the new repair facility protections.
Who it affects
Drivers and other claimants filing motor vehicle insurance claims in Georgia, auto insurance companies operating in the state, and repair shops, body shops, and dealerships that fix vehicles under insurance claims, especially those with financial ties to insurers.
Why it matters
Drivers filing a car insurance claim would gain a clear right to choose their own mechanic or body shop without fear that their claim payment could shrink, be delayed, or be denied. Insurers recommending shops they profit from would have to disclose that connection and confirm coverage amounts stay the same either way.
Key provisions
- Section 1 amends O.C.G.A. § 33-6-34 to add failure to comply with the new anti-steering rule in § 33-34-6 as a new category of unfair claims settlement practice, numbered paragraph (17).
- Section 2 rewrites O.C.G.A. § 33-34-6 in full, replacing the old cost-comparison test with a broader right for claimants to select any repair facility.
- New subsection (a) defines key terms including 'claimant,' 'financial interest,' 'motor vehicle liability insurance,' and 'repair facility.'
- New subsection (b) bars insurers from requiring use of a shop they have a financial interest in and from implying that shop choice affects claim payment or repair quality.
- New subsection (c) requires insurers recommending a shop to disclose the claimant's freedom to choose, that payment amounts are unaffected by the choice, and any financial interest in the recommended shop.
- New subsection (d) makes repeated violations of this section an unfair claims settlement practice under the state's Unfair Claims Settlement Practices Act.
- New subsection (e) directs the Insurance Commissioner to issue rules and regulations to implement the Code section.
- Section 3 repeals conflicting laws.
From the bill
“All policies of motor vehicle liability insurance shall allow a claimant under such policy to select the repair facility to provide repairs covered under such policy.”
“No insurer shall require a claimant under such policy to use a repair facility in which such insurer has a financial interest.”
“The amount determined to be payable under a motor vehicle liability insurance policy shall be paid regardless of the repair facility selected by a claimant.”
Status timeline
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Lehman Franklin (R, HD-160)
- Ron Stephens (R, HD-164)
- Jason Ridley (R, HD-006)
- Joseph Gullett (R, HD-019)
- Matthew Gambill (R, HD-015)
- Matt Barton (R, HD-005)
Topics
- auto insurance
- repair shops
- insurance regulation
- consumer protection
- claims settlement