N.H. Legislators Pass OEM Replacement Parts Bill

The New Hampshire House of Representatives on May 11 approved a bill that would prohibit insurance companies from requiring or specifying the use of non-OEM parts for the repair of vehicles that have been in service two years or less and have logged 30,000 miles or less.

The bill, which the state Senate passed back in March, would also restrict insurers from specifying such aftermarket parts for the repair of leased vehicles if the lease indicates that use of non-OEM parts would diminish the vehicle’s residual value.

In the context of the legislation, “specifying” such parts includes writing repair estimates based on the cost of aftermarket parts or declining to pay for the cost of original equipment manufacturer replacement parts.

Additionally, the bill would strengthen insurance company requirements to disclose to clients whenever a repair estimate is prepared based on the use of non-OEM parts.

The legislation now moves to the desk of Gov. Maggie Hassan.