A New York state lawmaker in recent months introduced legislation that would restrict repairs that deviate from vehicle or original equipment manufacturers’ (OEM) collision repair procedures, guidelines, recommendations and service bulletins.
Currently pending in the New York State Assembly Standing Committee on Insurance, Assembly Bill (AB) 245 would require shops to obtain written authorization from vehicle owners or owners’ authorized representatives before completing any collision repair that breaks from OEM repair procedures.
Democratic Assemblyman William Magnarelli introduced the bill in January, marking the fourth consecutive legislative session that the measure was proposed, according to the New York State Senate website.
Further, the bill would prevent insurance companies from “directly or indirectly” requiring repair shops from breaking from OEM guidelines and service bulletins without permission from vehicle owners.
Shops would additionally be required to follow OEM repair procedures or specifications issued before or after the start of any repair. That would include scans, calibrations and diagnostic tests of vehicle electronic systems.
After the bill’s introduction, Automotive Body Parts Association (ABPA) Executive Director Edward Salamy wrote a letter to the committee of jurisdiction opposing the bill.
The letter claimed the bill would “mandate the exclusive use” of OEM-branded parts in repairs, and noted that practice as “undeniably self-serving.”
Favoring OEM parts would result in higher insurance premiums, no discernible safety advantage and a tilt away from the use of aftermarket parts, which are generally priced about 25% to 60% lower than OEM parts, Salamy wrote.
Magnarelli in January introduced a similar bill that would require repairers use new OEM parts for the “first year of its manufacture and for the two years following” and to disclose to consumers the type of replacement parts they intend to use.
“The overall goal is to ensure that insurance companies are not forcing substandard repairs on customers,” Magnarelli told Autobody News at the time.
Magnarelli’s bills align with a recent focus in state legislatures on consumer transparency.
Although it targets consumer transparency from a different angle, a recent proposal by the Maine Right to Repair Working Group includes a batch of recommendations for legislation to establish a statewide regulatory framework enabling owner-authorized access to vehicle data across all makes and models.
A bill that died in the Michigan Legislature at the end of last year, House Bill 6267, would have required vehicle insurers’ rules manuals to include, among other things, rating steps or the rate order of calculations, all rating rules, a description of offered coverages and rules on coverage limitations or restrictions, and all rules for premium minimums and waivers.
However, ABPA argued New York AB 245 would work against consumer choice.
“While we acknowledge the value of OEM repair guidelines in ensuring proper repairs, AB 245 crosses a line by embedding their use in a way that benefits OEMs at the expense of competition, affordability and consumer choice,” Salamy wrote.
The letter continued: “For these reasons, we respectfully urge you to oppose and vote NO on AB 245. Doing so will safeguard consumer choice, promote competition and protect New York drivers from unnecessary costs.”
Magnarelli’s office did not respond to a request for comment.
Brian Bradley