State legislators in both Maryland and Louisiana are considering bills that would in some ways restrict insurance companies from ordering the use of non-OEM replacement parts for collision repair claims.
The Louisiana bill (HB 559) would prohibit insurers from requiring or authorizing non-OEM safety parts for vehicle repair — unless the OEM parts were commercially unavailable to the repair facility or installer. If they were unavailable, the claimant/vehicle owner would need to be advised in writing that non-OEM parts would be used in the repair.
The bill defines safety parts as components used in a vehicle’s anti-lock braking system or air bag restraint system. If passed into law, the legislation would become effective Jan. 1.
The Maryland bill (HB 1258) would prohibit insurers from ordering or authorizing non-OEM replacement parts during the first two years after a vehicle is manufactured. The restriction would apply to fenders, bumpers, door panels, hoods, grilles, wheel wells and front and rear lamp display panels.
After the two-year period, insurers could authorize non-OEM aftermarket parts only if a nonprofit, nationally accredited developer of standards had certified the parts. Such parts would be subject to regular testing by an independent third-party facility.
If passed into law, the Maryland bill would also take effect Jan. 1, 2017.