SACRAMENTO, Calif. — In what the California collision repair industry called one of its “finest political moments,” a California State Senate Committee approved the Collision Repair Association of California-sponsored legislation to stop insurers from mandating the use of aftermarket parts on new cars undergoing collision repairs.
“Our members lobbied hard in the morning and their efforts were rewarded in the afternoon as six Senators got our message about how CRA members want to protect consumers,” says Allen Wood, CRA executive director. The Banking, Finance and Insurance Committee approved the measure by a 6-3 vote. After the hearing, Sen. Carole Migden (D-San Francisco/North Bay) said: “It’s outrageous that legislation is necessary to protect consumers from their own insurance companies, but that is exactly the problem that this bill addresses. SB 1059 removes the Catch-22 that some insurers put claimants and repairers in when insurers insist that aftermarket parts be used in repairs even though doing this can void their clients’ vehicle warranties.” SB 1059 would make it unlawful for an insurer to require the installation of an aftermarket part affecting the engine, the heating and cooling system, the air condition system and corrosion protection if the part to be replaced is under a manufacturer’s original warranty and the replacement occurs within three years from the date from which the vehicle was first sold as new. The bill would allow use of aftermarket parts if the claimant’s insurance policy required the use of aftermarket parts. The bill will be heard next in the Senate Judiciary Committee at 1 p.m. April 16 in the State Capitol. This committee will exam how the measure affects consumer warranty law. “Suddenly the insurance industry is scrambling for explanations,” says CRA lobbyist Richard Steffen. “As I see it there has to be some legal acknowledgement by insurers that they are selling high-priced vehicle insurance policies without telling their policyholders that their new vehicles may be fitted with aftermarket parts that affect their new warranties. Consumers are smart once they have the facts and I don’t think they’ll be happy to learn that insurers are forcing repairers to install crucial non-factory parts on new cars.” Steffen said key support for the bill came from Rosemary Shahan, executive director of Consumers for Auto Reliability and Safety, law enforcement, the California Autobody Association and the California Motor Car Dealers Association. | 
