Florida Overhauls Auto Glass Laws Eliminating AOB and Zero Deductible

May 4, 2023

by Seth Maiman
AGSC Director of Public Affairs

This week, the Florida legislature passed a bill overhauling auto glass laws and eliminating Assignment of Benefits (AOB) and zero deductibles.

The state legislature passed an auto glass bill that will alter the auto glass business in the state of Florida. Senator Linda Stewart’s bill, SB 1002, passed the Senate by a vote of 40-0 on April 18 and the House by a vote of 103-16 on May 2. The bill now goes before the Governor and will be effective on the day he signs it and it becomes law.

The new Florida law will:

  • Prohibit policyholders (such as customers) from entering into Assignment of Benefits (AOB) agreements for glass replacement or repair, including recalibration.
  • Prohibit glass replacement and repair shops from offering an inducement to a customer for making an insurance claim for vehicle glass replacement or repair.
  • Extend the prohibition on inducements to include services for recalibration of an Advanced Driver Assistance System (ADAS).
  • Regulate businesses that recalibrate ADAS associated with windshields under the Florida Motor Vehicle Repair Act and requires notice to customers regarding the need for recalibration and for the recalibration performed to meet or exceed manufacturer’s specifications.
  • Prohibit insurance company “steering” or requiring a claimant use a particular company for windshield glass replacement, repair or recalibration services;
  • Allow insurers, in what has been a zero deductible state, to offer a policy that contains a repair arrangement for the provision of windshield glass replacement, repair or recalibration services, as long as they provide an actuarially sound discount to the insured for that type of policy.

What the New Law Means for Florida Glass Shops

  • Assignment of Benefits agreements are prohibited as of July 1, 2023.
  • Glass shops are prohibited from offering any inducement or thing of value in exchange for making a glass replacement, glass repair or associated recalibration of ADAS claim.
  • Companies offering recalibration services are regulated under the state Motor Vehicle Repair Act.
  • Glass companies must provide customers with an electronic or written notice, in at least 12-point type, as to whether the recalibration of the ADAS is required to make the ADAS operable and also must perform any necessary recalibration to meet or exceed vehicle manufacturer’s specifications.
  • Insurers and their agents and adjusters are prohibited from steering (requiring a claimant to use a particular glass shop).
  • Some customers may no longer have a zero deductible, as insurers will be able to offer a policy that includes a repair arrangement for glass replacement, repair and recalibration services as long as they provide an actuarially sound discount to any insured that accepts that arrangement
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