“Currently, there is no requirement for disclosure or consent when aftermarket parts are utilized in the repair process,” Kizenberger explains. NY Reg 64 speaks to the use of non-OEM crash parts only as it pertains to the insurer and the collision repair facility, but the proposed bill would include the consumer, expanding upon this regulation to require that consumers be aware when non-OEM parts are used in the repair and also that they provide consent before these parts are installed on their vehicle.
Kizenberger states, “it’s a consumer protection bill with three important components. First, it prevents insurance carriers from requiring the use of aftermarket or non-OEM parts for the first three years of a vehicle’s life; only OEM parts can be utilized for repairs during that time period. Once a vehicle is more than three years old, the repair facility must disclose the use of non-OEM parts to the consumer in a way they understand in order to provide informed consent and authorization. Finally, because it is so important to restore the vehicle to pre-loss condition, the insurance company will be financially responsible for any issues that may arise from the use of those non-OEM parts.”
Kizenberger also explains that this is the beginning of the new legislative session, and this is only the first of several bills that NYSACT has asked their sponsors to introduce into legislation. As the legislative session progresses, NYSACT plans to introduce several more bills, and next up is their parts procurement bill which will be introduced in the near future.