New Florida Law Halts Auto Glass Claims AOB Lawsuits

In an effort to address the growing congestion of auto glass claim cases in Florida’s courtrooms and potentially provide relief to policyholders, new legislation has been enacted to significantly curtail lawsuits related to windshield repairs. SB 1002 was signed into law by Governor Ron DeSantis on Thursday, effectively banning the use of assignment of benefits (AOB) in auto glass claims with immediate effect.

AOB has allowed policyholders to authorize repair shops to file claims on their behalf and receive payment from insurers without the policyholders’ direct involvement. However, according to the Department of Financial Services, last year alone, there were 33,196 windshield lawsuits involving AOB. Advocates of the legislation argue that a small group of unscrupulous lawyers have been taking advantage of the AOB process for their financial gain.

Under the new law, auto shops are prohibited from incentivizing customers to make insurance claims. Furthermore, the legislation requires insurers to provide customers with multiple options for repair shops, ensuring no preference is given to any particular company.

Fix the Cracks, a coalition comprising insurance companies and interest groups dedicated to reducing the number of auto glass lawsuits in Florida, commended DeSantis for signing the bill, which was a priority for state CFO Jimmy Patronis.
According to the organization, the average cost of windshield repairs in Florida is $426, a significant 59% increase compared to the national average of $294 in 2020. The implementation of this new law is expected to curtail fraudulent activity and shield consumers from rising insurance rates in the state.