---
title: HB 1421. Insurance; prohibit improper steering to repair facilities under motor vehicle liability insurance policies
collection: bills
id: 2025-2026/hb1421
cite_as: HB 1421, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1421
md_url: https://georgiacommons.org/bills/2025-2026/hb1421.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1421/text
source_url: https://www.legis.ga.gov/legislation/73475
date: 2026-02-25
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1421.md?full=1
bill_number: HB 1421
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-02-20
last_action: House Second Readers
sponsors:
  - Lehman Franklin
  - Ron Stephens
  - Jason Ridley
  - Joseph Gullett
  - Matthew Gambill
  - Matt Barton
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1421/2025
upstream_id: 2121430
summaries_model: claude-sonnet-5
topic_tags:
  - auto insurance
  - repair shops
  - insurance regulation
  - consumer protection
  - claims settlement
---

# HB 1421. Insurance; prohibit improper steering to repair facilities under motor vehicle liability insurance policies

## Text

House Bill 1421
By: Representatives Franklin of the 160th, Stephens of the 164th, Ridley of the 6th, Gullett of
the 19th, Gambill of the 15th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapters 6 and 34 of Title 33 of the Official Code of Georgia Annotated, relating
to unfair trade practices and motor vehicle accident reparations, respectively, so as to prohibit
improper steering to repair facilities under motor vehicle liability insurance policies; to
provide for unfair claims settlement practices; to provide for the selection of a repair facility;
to provide for payment for repairs; to provide for certain disclosures and notifications; to
provide for definitions; to provide for rules and regulations; to provide for related matters;
to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 6 of Title 33 of the Official Code of Georgia Annotated, relating to unfair trade
practices, is amended by revising paragraphs (15) and (16) in Code Section 33-6-34, relating
to unfair claims settlement practices, as follows:
"(15) Failure to comply with any insurer requirement in Chapter 20E of this title, the
'Surprise Billing Consumer Protection Act,' including:
(A) The failure to designate whether the healthcare plan is subject to the exclusive
jurisdiction of the Employee Retirement Income Security Act of 1974, 29 U.S.C. Sec.
1001, et seq.;
(B) The failure to directly pay the provider or facility within 15 working days for
electronic claims or 30 calendar days for paper claims any moneys due under Code
Section 33-20E-4 or 33-20E-5; or
(C) The failure to pay a resolution organization as required under Code Section
33-20E-16; <del>and
</del> (16) Failure to comply with any insurer requirement relating to emergency services or
care in Article 4 of Chapter 11 of Title 31, Article 1 of Chapter 20A of this title, Chapter
20E of this title, Chapter 21A of this title, Code Section 33-24-59.27, and Chapter 30 of
this title; <ins>and
(17) Failure to comply with any insurer requirement relating to steering to repair
facilities under motor vehicle liability insurance policies as provided under Code Section
33-34-6."
</ins> SECTION 2.
Chapter 34 of said title, relating to motor vehicle accident reparations, is amended by
revising Code Section 33-34-6, relating to selection of motor vehicle repair facility, as
follows:
"33-34-6.
<del>(a) Subject to the provisions of subsection (b) of this Code section, no insurer shall
represent to a person making a claim under a motor vehicle insurance policy that the use
of or the failure to use a particular repair facility or particular repair facilities may result
in the nonpayment of a claim.
(b) No insurer shall require a person making a claim under a motor vehicle insurance
policy to use a particular repair facility or particular repair facilities in order to settle a
</del>
<del>claim if the person making the claim can obtain the repair work on the motor vehicle at the
same cost from another source.
</del> <ins>(a) As used in this Code section, the term:
(1) 'Claimant' means either a first-party claimant or insured or a third-party claimant who
asserts a claim for payment, benefits, reimbursement, or damages under a motor vehicle
liability insurance policy arising out of, based on, or in any way related to a motor vehicle
collision, loss, ownership, maintenance, or use. Such term includes any assignee,
subrogee, or legal representative of a first-party claimant or third-party claimant to the
extent such assignee, subrogee, or legal representative asserts the claim.
(2) 'Financial interest' means any stake of monetary value, direct or indirect, in an entity.
Such term includes any ownership interest, direct repair program, affiliation agreement,
favored facility agreement, labor rate agreement, parts agreement, or service level
agreement.
(3) 'Motor vehicle liability insurance' means motor vehicle insurance that covers the use
of a motor vehicle and its operating equipment; covers liability, collision, comprehensive,
personal injury protection or medical payments, or uninsured or underinsured motorist
protection; or provides the mandatory minimum limits required under this chapter for the
personal use of a private passenger automobile. Such term includes coverage provided
through an approved plan or certificate of self-insurance to the extent recognized under
state law as satisfying such minimum limits.
(4) 'Repair facility' means a motor vehicle dealer, garage, body shop, or other
commercial entity which undertakes the repair or replacement of parts of a motor vehicle.
(b) 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. No insurer shall represent to a claimant under such policy that the use
of or the failure to use a particular repair facility or particular repair facilities may result
</ins>
<ins>in nonpayment or delayed or reduced payment of a claim or less quality or timeliness of
repair under a claim. 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.
(c) No insurer shall recommend the use of a particular repair facility without clearly
informing a claimant under a motor vehicle liability insurance policy of the following:
(1) The claimant is under no obligation to use the recommended repair facility;
(2) The claimant may use a repair facility of the claimant's choice;
(3) The amount determined by the insurer to be payable under such policy will be paid
regardless of whether or not the claimant uses the recommended repair facility; and
(4) Whether or not the insurer has a financial interest in the recommended repair facility.
(d) A violation of this Code section that occurs with such frequency as to constitute a
general business practice shall be a violation of Article 2 of Chapter 6 of this title, the
'Unfair Claims Settlement Practices Act.'
(e) The Commissioner shall promulgate rules and regulations necessary to implement this
Code section."
</ins> SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.

## Summaries written by Georgia Commons

The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.

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.

### Plain-language summary

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 it 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.

## Status

- Status: Introduced (2026-02-20)
- Last action: House Second Readers (2026-02-25)
- Sponsors: Lehman Franklin, Ron Stephens, Jason Ridley, Joseph Gullett, Matthew Gambill, Matt Barton
- Official page: https://www.legis.ga.gov/legislation/73475

> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb1421.md?full=1