Automotive Repair Business Amendments

Deleted the requirement for insurers to disclose if a non-OEM part has been certified by an independent testing organization.

Changed the rule so that repair facilities or installers are prohibited from using non-OEM parts unless the insurer provides written notice of their intent to use them in the application.

Added a new requirement for insurers to ensure that any non-OEM parts used are equivalent in quality, safety, fit, and performance to OEM parts.

Adjusted the definition section to renumber items and remove the specific definition for 'Independent testing organization'.

Updated the highlighted provisions list to reflect the new simplified requirements and removed references to independent testing certification.

Added specific definitions for 'installer', 'independent testing organization', 'non-OEM', and 'repair facility' to clarify responsibilities and standards.

Changed the timing of disclosure from a general notice to a specific requirement to include a disclosure statement on every policy application regarding the type of parts the insurer intends to use.

Added a new requirement for insurers to send a notice to policyholders before renewal if the policy covers non-OEM aftermarket parts.

Added a requirement for insurers to disclose to the insured whether a non-OEM part has been certified by an independent testing organization.

Removed the previous requirement that insurers must use crash parts 'substantially equivalent' to OEM parts, replacing it with a requirement to use the specific type of part the insurer disclosed on the application.

Granted motor vehicle owners a specific right of action to sue insurers that violate the new disclosure or usage requirements.

Explicitly stated that the Insurance Department and Commissioner are not required to administer or enforce the new disclosure and usage provisions.

Insurers must now provide a clear and conspicuous disclosure at the time of purchase stating whether they intend to use non-OEM or OEM aftermarket crash parts for repairs.

Insurers are prohibited from reducing or 'stepping down' available coverage limits if a permissive user or a household resident described in the policy is at fault in causing an accident.

New rules clarify that 'guardianship' includes foster parents who sign liability agreements for minors in their care, expanding the scope of covered household members.

Estimates for repairs using non-OEM parts must clearly identify each part and include a specific disclosure statement explaining that warranties come from the part manufacturer, not the vehicle manufacturer.

Vehicle owners are granted a right of action to sue insurers that violate the new requirements regarding the use of non-equivalent aftermarket crash parts, with courts authorized to award actual damages.

The bill takes effect on May 6, 2026.

Deleted the requirement for insurers to provide a separate written notice about aftermarket parts at the time of policy issuance and renewal.

Added a requirement that the insurance policy itself must include a clear and conspicuous disclosure stating whether the insurer intends to use non-OEM or OEM aftermarket crash parts for repairs.

Removed the specific definition of 'OEM aftermarket crash part' from the code, as it was part of the deleted notice requirements.

Removed the specific exemption stating that the Insurance Department is not required to enforce the notice provisions, as those provisions were deleted.

Expanded the bill to amend additional statutes regarding required components of motor vehicle insurance policies and motor vehicle liability coverage.

Added specific definitions for 'OEM aftermarket crash part' (made for or by the vehicle manufacturer) and 'installer' (individual who repairs parts).

Changed the timing of the requirement to notify insureds about the potential use of aftermarket parts from the time of a repair claim to the time of policy issuance and renewal.

Added a new requirement that insurers cannot reduce coverage for a named insured or household resident if a permissive user or another household member is at fault in an accident.

Clarified that the Insurance Department and Commissioner are not required to administer or enforce the new disclosure provisions regarding aftermarket parts.

Updated the bill's highlighted provisions to accurately reflect the new definitions and notice timing requirements.

Requires insurance policies to include a clear and conspicuous disclosure stating whether the insurer intends to use non-OEM aftermarket crash parts or OEM aftermarket crash parts for repairs.

Modifies existing liability coverage provisions to prevent policy limits from being reduced or 'stepped down' in specific accident scenarios, strengthening coverage for named insureds and household residents.

Grants motor vehicle owners a legal right of action (lawsuit) against insurers that do not use crash parts substantially equivalent to original equipment manufacturer aftermarket repair parts.

Removed the provision granting motor vehicle owners the right to sue insurers if they use aftermarket parts that are not substantially equivalent to original equipment.

Deleted the requirement for the department and commissioner to administer or enforce the new quality standards for aftermarket parts.

Changed the requirement for aftermarket parts from being 'substantially equivalent' to simply being 'equal' in kind and quality.

Removed a requirement that insurers must use crash parts substantially equivalent to OEM parts.

Removed the right of action allowing vehicle owners to sue insurers for violating the substantially equivalent parts requirement.

Expanded the exemption for the Insurance Department to include enforcement of Subsections (2) through (4), which cover the substantially equivalent parts requirement and related disclosures.

Updated the highlighted provisions summary to reflect the removal of the lawsuit right and the change in enforcement scope.

Added new definitions for 'OEM aftermarket crash part', 'installer', 'repair facility', and 'non-OEM aftermarket crash part' to clarify what parts are covered under the law.

Changed the requirement for insurers from mandating the use of non-OEM parts to merely notifying policyholders that insurers may authorize or specify such parts.

Removed the requirement for the Insurance Department to administer or enforce specific disclosure rules regarding aftermarket parts.

Updated the effective date of the bill to May 6, 2026.