Nebraska Legislature Bill LB111

Nebraska 2025-2026 Regular Session

• Introduced: 1/10/25
• Refer: 1/14/25

Caption

Prohibit certain actions of insurers relating to repairing motor vehicles and nonoriginal equipment manufacturer parts

Impact

Should LB111 be enacted, it will significantly alter the landscape of insurance regulations related to motor vehicle repairs. Specifically, the bill will establish clearer guidelines for both insurers and consumers regarding the approval and coverage of non-OEM parts. This change could lead to more competitive pricing for repairs, as mechanics would have the flexibility to use a wide array of parts as opposed to being limited to OEM options. Additionally, the bill could enhance consumer choice and promote a healthier repair market by reducing insurer control over repair choices.

Summary

LB111 aims to prohibit certain actions of insurers that relate to the repair of motor vehicles, specifically focusing on practices involving the use of nonoriginal equipment manufacturer (non-OEM) parts. The bill is designed to create a more transparent and fair process for consumers and mechanics alike, ensuring that insurance companies cannot impose limitations or conditions on the use of non-OEM parts unless specific criteria are met. Proponents of the bill argue that it will improve safety and potentially reduce the financial burden on consumers by allowing a wider range of parts to be used in repairs without insurance restrictions.

Contention

Despite its benefits, LB111 has faced criticism and opposition from insurance industry representatives who argue that the measure could lead to increased costs for insurers, which may, in turn, be passed on to consumers through higher premiums. They contend that restricting insurers' ability to regulate the types of parts used in repairs could also heighten risks associated with vehicle safety and quality. Proponents of the bill, however, maintain that the intended consumer protections outweigh these concerns, emphasizing the need for a balance between regulatory oversight and consumer rights in the automotive repair industry.