Automobile collision coverage: payment for repairs.

Existing law requires an insurer issuing an automobile collision policy or a policy for comprehensive coverage for a motor vehicle to make the payment in a specified manner if the covered automobile is damaged and the insurer elects to have the automobile repaired. This bill would make that requirement apply to a policy for automobile physical damage coverage, instead of comprehensive coverage, if a covered automobile is damaged by collision or otherwise and the insurer knows that the automobile will be repaired. The bill would state that these provisions do not limit the right of an insured to select the auto body repair shop or other repair facility to repair the damaged vehicle, or to decide not to have the vehicle repaired. The bill would prohibit an insurer from withholding the payment of reasonable repair cost benefits that are otherwise payable under the policy if the insured decides not to have the vehicle repaired. The bill would state that these provisions do not prohibit an insurer from restricting payment in cases of suspected fraud or from including a named loss payee or lienholder as an additional payee on the claims payment check or draft, as described. The bill would also state that these provisions do not prohibit an insurer from requiring that a damaged vehicle be repaired as a condition for payment if the damage to the vehicle is sufficiently serious that safety features that are part of the vehicle's operating systems are compromised. The bill would also make technical changes.