Tasmania is the only other state close to following South Australia’s lead.

The new laws mean that insurers will be compelled to resolve disputes with repairers quickly and fairly and “get motorists back on the road sooner,” said MTA SA/NT CEO Darrell Jacobs.

“Repairers want to service their customers in the best way possible and this initiative assists in making sure repair work does not compromise on safety and the vehicle is returned to pre-accident condition.”

Mr Jacobs said that for customers, it means “motorists want to get the keys to their car back as soon as possible and this new mandated Code of Conduct will help further achieve this.”

“Because of this your car will be repaired when you like, with the parts you like.”

The mandated Motor Vehicle Insurance and Repair Industry Code of Conduct now requires all insurers and repairers in South Australia to abide by the framework, regardless of whether they are signatories or not.

Darrell Jacobs

South Australia is the first jurisdiction to mandate the national code with financial penalties for breaches and the South Australian Small Business Commissioner will be required to report on disputes and outcomes each year.

Further reforms are expected to be enacted from June where insurers will be required to inform policyholders whether their vehicle insurance product allows for choice of repairer, as well as whether the insurer has a financial or contractual relationship with a repairer they may be referred to during the claims process.

Mr Jacobs said that motorists have the right to know where they can get their vehicle repaired.

“Many consumers are surprised to learn their vehicle insurance does not allow them to choose their local or preferred repairer,” he said.

The MTA said it strongly lobbied both major South Australian parties as well as all minor parties and independents to get the legislation over the line.

It said that the law now strengthens the state’s reputation for levelling the playing field for small, medium and family run collision repair businesses, as well as promoting greater consumer choice and transparency.

South Australian Minister for Small and Family Business and Minister for Consumer and Business Affairs Andrea Michaels said “navigating the world of car insurance after an accident can be a minefield, and it’s important that the system is as fair as possible.”

By Neil Dowling