The implementation of S0926 is expected to create specific standards that repair shops and insurance companies must follow when using used parts. New requirements mean that used parts must be of equal quality to OEM parts, must be from vehicles of the same year or newer, and have similar or lesser mileage. This amendment seeks to ensure that vehicle repairs are conducted to a high standard, helping vehicle owners to receive repairs that maintain the integrity and safety of their vehicles. Additionally, insurance companies will have to comply with these standards when facilitating repairs for insured vehicles.
Summary
Bill S0926 amends existing legislation related to motor vehicle replacement parts, specifically focusing on standards for the usage of used parts in the repair of physically damaged vehicles. The bill seeks to enhance the definition and categorization of vehicle replacement parts by introducing terms like 'aftermarket part', 'original equipment manufacturer part (OEM)', and 'used part'. These definitions aim to clarify what constitutes a used part and its eligibility for repair services, thereby fostering fair practice in the automobile repair industry.
Contention
Noteworthy points of contention may arise regarding the balance between cost savings for consumers and the quality assurance of repairs. Some stakeholders—particularly body shop owners and consumers—may support the bill for its emphasis on quality of parts, whereas insurance companies might resist new requirements that could increase operational costs or complicate their workflows. Furthermore, there may be discussions regarding the implications of allowing insurers to dictate repairs, especially with the introduction of new protocols for dealing with parts that fail to meet the standards set forth in the bill.
Prohibits insurance companies from refusing to use after market parts that are greater than 48 months and less than 72 months from the date of manufacture, provided the repairer has written consent from the owner of the vehicle.
Prohibits insurance companies from refusing to use after market parts that are greater than 48 months and less than 72 months from the date of manufacture, provided the repairer has written consent from the owner of the vehicle.
Makes it an unfair claims practice for insurer to designate a motor vehicle a total loss if the cost to repair motor vehicle to its pre-accident condition is less than 85% of the fair market value.
Makes it an unfair claims practice for insurer to designate a motor vehicle a total loss if the cost to repair motor vehicle to its pre-accident condition is less than 75% to 80% of the fair market value.