California State Sen. Carole Migden, D-San Francisco, introduced legislation (S.B. 1059) on Jan. 7 that would prohibit an insurance company from requiring that an aftermarket part be used in the repair of a vehicle that is under factory warranty. Insurance companies could be fined $5,000 to $10,000 per violation. According to the Collision Repair Association of California, the bill’s main sponsor, S.B. 1059 is aimed at protecting both consumers and repairers when the use of an aftermarket part might void a factory warranty.
The legislation would add “requiring an automotive repair dealer to install an aftermarket part in a vehicle that is under factory warranty” to the current list of unfair claim settlement practices. Under S.B. 1059, an aftermarket part could only be used in a repair paid for by an insurance company if both the repairer and consumer consent.