The Collision Repair Association of California (CRA) issponsoring legislation that will penalize insurers for havingrepair shops use aftermarket parts on vehicles that are under afactory warranty.

|

SB 1059 has been introduced by California State Senator CaroleMigden (D) in an attempt to protect interested parties in the eventthat installed aftermarket parts cause a factory warranty to bevoid.

|

Through this legislation, the CRA seeks to show that insurerswant to control auto repair work through contracts between thevehicle owner and the repairer in order to remove responsibilityfrom the insurer.

|

“Requiring an automotive repair dealer to install an aftermarketpart in a vehicle that is under factory warranty,” is the keyprovision in this bill.

|

CRA lobbyist Richard Steffen commented in a release by the CRA,“An insurer may ask that an aftermarket part be used, and that partmay be installed if the repairer and the consumer consent. But inthose cases where the repairer believes that “factory is best,” theinsurer would not be able to override this decision if SB 1059 werelaw.”

|

Interested in more auto-claim news and in-depth articles? Headover to Claims' auto-claim channel for more information.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.