HB1421: HB1421 Insurance; prohibit improper steering to repair facilities under motor vehicle liability insurance policies

Right now Georgia law already limits insurers from telling drivers that using or avoiding a particular repair shop could affect their claim payment, but this bill expands and tightens those rules. It rewrites O.C.G.A. § 33-34-6 to guarantee that every driver making a claim under a motor vehicle liability insurance policy can choose their own repair facility, and it flatly bans insurers from requiring a claimant to use a shop the insurer has a financial interest in, such as an ownership stake or a direct repair program agreement. If an insurer recommends a particular shop, it must clearly tell the claimant that they are not obligated to use it, that they can pick their own shop, that the payout will be the same either way, and whether the insurer has a financial interest in the recommended shop. Repeated violations count as a general business practice violation of Georgia's Unfair Claims Settlement Practices Act. The bill also adds a cross-reference in Chapter 6 of Title 33 making steering violations enforceable as unfair claims practices, and directs the Insurance Commissioner to write implementing rules.

• Guarantees that a person making a motor vehicle liability insurance claim can pick their own repair facility rather than being required to use one chosen by the insurer.
• Bans insurers from requiring a claimant to use a repair shop in which the insurer holds a financial interest, defined to include ownership, direct repair programs, and favored facility agreements.
• Requires insurers that recommend a specific repair shop to disclose that the claimant is not obligated to use it and to disclose any financial interest the insurer has in that shop.
• Requires that the amount an insurer determines is payable on a claim be paid the same regardless of which repair facility the claimant chooses.
• Makes repeated steering violations count as violations of Georgia's Unfair Claims Settlement Practices Act (O.C.G.A. § 33-6-34), adding a new paragraph (17) covering this conduct.
• Directs the Insurance Commissioner to create rules and regulations to carry out the new repair facility selection protections.

Georgia drivers filing claims under motor vehicle liability insurance policies, auto insurance companies operating in the state, and motor vehicle repair facilities such as dealer body shops and independent garages that compete for insurer-referred repair work.

Drivers would have clearer legal protection to choose their own mechanic or body shop after an accident without fear that their claim payment will be reduced, delayed, or denied, and insurers would have to disclose financial ties to any shop they recommend.

• Section 1 amends the Unfair Claims Settlement Practices Act (O.C.G.A. § 33-6-34) to add a new category, paragraph (17), covering failure to comply with the repair facility steering rules in Code Section 33-34-6.
• Section 2 rewrites O.C.G.A. § 33-34-6 to define key terms including 'claimant,' 'financial interest,' 'motor vehicle liability insurance,' and 'repair facility.'
• Subsection (b) requires all motor vehicle liability policies to let the claimant choose the repair facility and bars insurers from requiring use of a shop in which they have a financial interest.
• Subsection (c) requires insurers recommending a repair shop to disclose four specific facts to the claimant, including any financial interest in that shop.
• Subsection (d) makes frequent violations count as a general business practice violation under the state's Unfair Claims Settlement Practices Act.
• Subsection (e) directs the Insurance Commissioner to issue rules and regulations to implement the new repair facility protections.
• Section 3 repeals any conflicting laws.

1. 2026-02-25House Second Readers (House)
2. 2026-02-24House First Readers (House)
3. 2026-02-20House Hopper (House)

• Lehman Franklin (R, HD-160)Primary sponsor
• 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)

• auto insurance
• car repair shops
• insurance regulation
• consumer protection
• claims disputes