CA AB1538

Requires insurers issuing automobile collision or physical damage coverage policies to pay repair costs by check, draft, or electronic transfer to the repairer within 10 days of receiving an itemized bill for completed authorized repairs.

Protects insureds' right to select their own repair facility and decide whether or not to have their vehicle repaired without penalty.

Prohibits insurers from withholding reasonable repair cost benefits if an insured chooses not to repair the damaged vehicle.

Allows insurers to restrict payment for suspected fraud cases and to include named loss payees or lienholders as additional payees on payment checks or drafts.

Permits insurers to require vehicle repair as a payment condition only when damage is severe enough to compromise safety features that are part of the vehicle's operating systems.