Two New York bills that would require repair shops and insurance companies to notify vehicle owners about the type of crash parts used in a repair have been revived.
Senate Bill 4753 and Assembly Bill 47 would also require the use of OEM parts for two years after the vehicle model year or the lifetime of the vehicle’s warranty. Both were filed last year and sent to the Transportation Committees in the Senate and Assembly. Each was resent to the committees earlier this month.
The bills would require repair shops to disclose the type of replacement crash parts in a notice to be signed by the vehicle’s authorized representative. The notice would have to be attached to a copy of the collision repair estimate.
The notice would list each replacement part as either new OEM, aftermarket replacement, recycled replacement, or remanufactured replacement.
Insurance companies also would have to disclose to customers if they require the use of certain types of replacement crash parts and place this information on an estimate.
The bills also require insurance companies to cover the cost of additional labor and materials if an insurer requires a replacement crash part that is ill-fitting or that increases labor and materials for installation or use.
The Auto Body Parts Association (ABPA) submitted opposition to A75 when it was first introduced last year. The letter, signed by Executive Director Edward Salamy, says the bill would mislead and confuse consumers.
“This legislation, if enacted, will have significant negative consequences for New York drivers by increasing vehicle repair costs, raising insurance premiums, and limiting consumer choice in automotive repairs,” the letter says.
Salamy argues that aftermarket parts are typically priced 25–60% lower than OEM parts. He adds that restricting affordable part options would inflate repair costs, which insurers would pass on to consumers.
“The required written authorization for the use of aftermarket parts is likely to confuse consumers by implying that these parts are inferior or unsafe,” the letter says. “In reality, many aftermarket parts are subject to rigorous quality and safety standards and are often indistinguishable from OEM parts in functionality.”
According to the letter, ABPA’s members distribute over 80% of independently produced aftermarket replacement parts to the collision repair industry across the U.S.