California Assembly Bill AB646

California 2025-2026 Regular Session

• Introduced: 2/13/25
• Refer: 3/3/25

Caption

Insurance: warranty: catalytic converter.

Impact

The primary impact of AB646 is the limitation it places on warranty benefits, specifically capping them at the actual cost of replacing a stolen catalytic converter if the warranty exclusively covers such parts. This change aims to provide more precise standards for vehicle protection warranties and better outlines the obligations of warrantors. The bill supports both consumers and businesses by clarifying what constitutes a vehicle protection product and reinforcing the requirements for warrantors to maintain insurance policies. This reform can enhance consumer trust and promote responsible practices in the warranty industry.

Summary

Assembly Bill 646 (AB646) introduced by Assembly Member Wallis aims to amend Section 116.6 of the California Insurance Code. The bill focuses on the definition and requirements of warranties related to vehicle protection products, particularly those designed to deter the theft of vehicles and catalytic converters. Under existing law, these warranties constitute express warranties and are not considered automobile insurance, provided certain conditions are met. AB646 proposes to refine these definitions and stipulations, specifically regarding the benefits payable upon theft events related to vehicles and their catalytic converters.

Contention

Notable points of contention may arise around the implications this bill has on the warranty industry. Critics could argue that limiting warranty benefits specifically to catalytic converter replacements may not fully address broader concerns related to vehicle theft. Additionally, while this bill reinforces consumer protection by requiring transparency in warranty conditions, it may also lead to higher costs for consumers seeking comprehensive vehicle protection products. As the bill progresses through the legislative process, stakeholder reactions from both consumer advocacy groups and the warranty industry will be important in defining the potential consequences of these changes.