NICB Works With Kentucky Lawmakers to Protect Consumers from Auto Glass Fraud

New Law Curbs Fraudulent Activities and Ensures Transparency in Auto Glass Repair Process

FRANKFORT, Ky., May 8, 2024 /PRNewswire/ — In response to rising concerns about auto glass repair fraud in the Bluegrass State, the National Insurance Crime Bureau (NICB), the nation’s premier non-profit association dedicated to combating and preventing insurance fraud, worked closely with Kentucky state lawmakers on legislation aimed at addressing this issue and protecting consumers from deceptive practices in the auto glass repair industry. The measure, S.B. 29 sponsored by Kentucky Senator Brandon Storm (R-KY) and recently signed into law, seeks to implement stricter regulations and oversight measures to curb fraudulent activities and ensure transparency and fairness in the auto glass repair process. The law is similar to legislation enacted in Florida last year that prohibits auto glass companies from engaging in various fraudulent practices.

“This law will help weed out unscrupulous operators who engage in fraudulent practices, such as overcharging, unnecessary repairs, and using substandard materials,” said Eric De Campos, NICB’s Senior Director of Government Affairs. “By implementing critical consumer protections, as well as enhancing consumer education, the measure aims to create a more transparent and accountable auto glass repair industry that prioritizes the interests of consumers.”

“This new law in Kentucky represents a significant step forward in addressing auto glass repair fraud and protecting consumers from deceptive practices,” said Senator Storm. “The measure would also impose stiff new penalties and fines for violations of the law and repair shops found guilty of engaging in fraudulent activities would face license revocation, and possible criminal charges.”

The law includes provisions to enhance consumer education and awareness about auto glass repair services and requires repair shops to provide clear and detailed estimates to customers, disclose all fees and charges upfront, and obtain written consent before proceeding with any repairs. Additionally, it would establish a mechanism for consumers to report suspected instances of fraud or misconduct, enabling authorities to take swift action against offending repair shops.

About the National Insurance Crime Bureau: Headquartered in Oak Brook, Ill., the National Insurance Crime Bureau (NICB) is the nation’s leading not-for-profit organization exclusively dedicated to combatting and preventing insurance crime through Intelligence, Analytics, and Operations; Education and Crime Prevention; and Strategy, Policy, and Advocacy. NICB is supported by more than 1,200 property and casualty insurance companies and self-insured organizations. To learn more, visit NICB.org.

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SOURCE National Insurance Crime Bureau