The law is the culmination of several years' effort to reform Minnesota's glass-repair costs, which according to many, are currently the highest in the country. The previous law allows the state's insurance commissioner to resolve price disputes through a market survey but leaves room for costs to be higher than the market average, depending on the individual case.

That has given smaller glass-repair shops that charge higher rates room for argument when insurance companies don't want to pay. They have been able to show that their charges are legitimately higher because they have costs, such as advertising, that they have to roll into their repair charges in order to remain profitable.

According to the Alliance of American Insurers (AAI), auto-repair costs account for 40 to 50 percent of auto insurance premium costs. Though glass repair is a small portion of that percentage, the group says in Minnesota the portion is much larger than in other states, which has driven up the overall cost of auto insurance premiums.

Gov. Ventura vetoed the bill, saying he disagreed with several of the arguments. He says "no evidence exists that insurance premiums will decline if this bill is enacted into law." Legislators, however, tended to agree with insurance companies that argued that market competition creates its own cost controls.

"If the free market is allowed to operate, [glass-repair shops] that are competitive in price will thrive," says an AAI spokesperson.

The new law also allows auto insurers to refer policyholders to particular repair shops, although they must make it clear in their policies that the insured can select whatever glass-repair facility they want. They also are required to tell consumers that they have a right to go to any vendor of their choice.