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

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.

• 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.

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.

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.

• 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.

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

• Lehman Franklin (R, HD-160)Patrocinador principal
• 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
• repair shops
• insurance regulation
• consumer protection
• claims settlement