Senate Bill No. 511, introduced by Senator Cathey, aims to enhance transparency in automobile repairs by enacting R.S. 22:1289.2. The bill prohibits insurers from "steering" policyholders or third-party claimants toward preferred repair shops, ensuring that individuals have the right to choose their own repair services without being influenced by the insurer. Insurers are also barred from offering incentives for using preferred shops or requiring their use as a condition for claim payment.

Additionally, the bill mandates that repair shops disclose the use of non-original equipment manufacturer (non-OEM) or nonstandard parts and obtain written consent from policyholders or claimants before using such parts. This consent must include a signed release acknowledging the risks associated with these parts. If an insurer pressures a policyholder into accepting substandard repairs, the liability for any resulting safety issues will fall on the insurer. The provisions of this bill are set to take effect on August 1, 2026.