The Washington Metropolitan Auto Body Association (WMABA) has put out an alert to its members that it has come to their attention that insurance companies are asking repairers to testify against the group’s pro-consumer parts legislation in Maryland.
WMABA claims that the insurers are telling repairers and legislators that this bill will total loss more vehicles, which the association says "is nothing more than unsubstantiated fear mongering."
In its email alert, WMABA spelled out what it feels is the truth about the legislation and why repairers should support it:
The 2014 Senate Bill 487 (House Bill 574) prohibits the use of aftermarket parts for the first three years of the vehicle (not longer), a time in which it is under warranty and possibly a lease agreement that conflicts with the insurer specification of those parts. If the consumer then needs to have the genuine parts to stay in compliance, they would be out-of-pocket the difference. Insurers are aware of the specifications of warranties and lease agreements that come with new vehicles, and are acting in direct conflict with them simply to reduce claims payments. This is entirely at the expense of the consumer, who is left with loss of vehicle value or additional out-of-pocket.
Our customers pay premium dollars, and are getting less than they deserve and expect by the insurers’ cost-containment tactics.
The bill also prohibits insurer mandate of a particular process or vendor for the procurement of parts or materials in the repair of the vehicle. This gives the repairer and the consumer the benefit of removing parts choice limitations set by insurers that are there for the benefit of the insurers’ pockets only.
More information:
WMABA Pledges Support of Maryland Parts Procurement/Aftermarket Parts Bill
