Utah Rep. Colin Jack (R-District 73) has introduced a bill that would amend current law to require motor vehicle liability policies to cover the difference between vehicle market value before and after a collision and the use of OEM-equivalent parts in repairs.

HB 522 would grant the insurance department rulemaking authority to establish a formula to determine the coverage of value differences. It would also require automotive repair facilities or installers to use crash parts that are “substantially equivalent in quality and function to OEM aftermarket crash parts.”

Colin was scheduled to present the bill to the House Economic Development and Workforce Services Committee on Feb. 28 but that was put on hold. During the committee meeting, Chair Jon Hawkins said Colin had told him there are “things that are wrong with it and he doesn’t have time to work on it.”

If approved, the bill would take effect on May 7.

Bills regarding the use of OEM parts are also under consideration in New York and Texas.

New York’s  AB 75 would require collision repair shops to disclose to vehicle owners the types of replacement parts they plan to install during vehicle repairs. Written authorization to use the parts would also be required, for which a form is included in the bill that would be provided to customers along with estimates.

In Texas, SB 1429 would require OEM parts and procedures to repair vehicles owned by the insured for three years or less. Customers would still have the option to use “non-original equipment” — “a part, product, or repair process used in the repair of a motor vehicle that is not made by or for or used by that vehicle’s manufacturer or distributor.”

Insurers would also be barred from requiring or requesting that a repairer or facility use any specific percentage of non-original equipment to repair a vehicle and from limiting policy beneficiaries from selecting a repairer or facility to repair their damaged vehicle.

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