What's happening
This bill prohibits insurers from requiring repair shops to use specific vendors or processes for obtaining parts or materials.
Why it matters
Shifts more decision-making power to repair shops. By preventing insurers from dictating which vendors or processes must be used to obtain parts and materials, repair facilities gain greater control over how they source necessary items, potentially allowing for more flexibility and efficiency.
Could affect repair costs and quality. Repair shops might choose parts or procurement methods that differ from insurer-preferred options, which could lead to differences in cost, quality, or speed of repairs. This could benefit consumers if shops prioritize quality, but could also raise concerns about consistency.
Reduces insurer influence over repair processes. Insurers often set requirements to manage costs or standardize repairs. Limiting their ability to do so may reduce their leverage, affecting their ability to negotiate volume discounts or ensure uniform repair standards across claims.
May increase competition among parts and materials suppliers. Since repair shops would not be locked into insurer-mandated vendors, a wider range of suppliers could gain access to the market, potentially driving innovation or lowering prices through increased competition.
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Who cares
Headline styles
Stop Insurer Repair Mandates
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to insurance
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Let Shops Choose Car Parts
In Assembly Committee · Insurance · Sponsor Steven Englebright
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5761
2017-2018 Regular Sessions
IN SENATE
April 28, 2017
Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance
AN ACT to amend the insurance law, in relation to collision and comprehensive coverage on motor vehicles
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (a) of section 2610 of the insurance law is amended to read as follows:
(a) Whenever a motor vehicle collision or comprehensive loss shall have been suffered by an insured, no insurer providing collision or comprehensive coverage therefor shall require that repairs be made to such vehicle in a particular place or shop or by a particular concern, nor require a repair facility to use a specific vendor or process for the procurement of parts or other materials necessary for the repair of a motor vehicle.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03885-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to collision and comprehensive coverage on motor vehicles
Purpose or general idea of the bill
Amends the insurance law directing that no insurer providing collision or comprehensive loss shall require a repair facility to use a specific vendor or process for the procurement of parts or other materials necessary for the repair of a motor vehicle.
Summary of specific provisions
Section 1 amends Subsection (6) of section 2610 of the insurance law.
Justification
Currently, insurance companies have been directing auto repair businesses to procure their parts from an online source and will only reimburse the repair shop if they do so. The online source only provides the repair shop with the lowest priced replacement part, often times from out of state. These replacement parts are most often not Original Equipment Manufactured (OEM) parts and therefore are of sub-quality and not up to the most stringent safety standards. This bill simply allows auto repair shops to continue to procure replacement parts from local suppliers and to ensure that these parts are of OEM quality.
Prior legislative history
2013-14 A7234 referred to insurance 2015-16 A6684 advanced to third reading
Fiscal implications for state and local governments
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.