Cars Bought New Get Original Parts For 36 Months

The text as introduced · 855 words

89R14681 SCR-F

By: Hughes
S.B. No. 1429

A BILL TO BE ENTITLED

AN ACT

relating to insurer restrictions and duties regarding repair of a

motor vehicle covered under an insurance policy.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 1952.301, Insurance Code, is amended to

read as follows:

Sec. 1952.301. LIMITATIONS AND DUTIES REGARDING REPAIR OF

MOTOR VEHICLE [ LIMITATION ON PARTS, PRODUCTS, OR REPAIR PERSONS OR

FACILITIES PROHIBITED ]. (a) In this section:

(1) "New motor vehicle" has the meaning assigned by

Section 2301.002, Occupations Code.

(2) "Non-original equipment" means a part, product, or

repair process used in the repair of a motor vehicle that is not

made by or for or used by that vehicle's manufacturer or

distributor.

(b) Under an automobile insurance policy that is delivered,

issued for delivery, or renewed in this state, for damage to a motor

vehicle that has been owned by the insured for 36 months or less and

that was a new motor vehicle when delivered to the insured, the

insurer:

(1) shall require that a part, product, or repair

process used to repair the vehicle be the original equipment

manufacturer's or distributor's part, product, or repair process,

unless the insured opts to use non-original equipment in accordance

with Subsection (f); and

(2) may not limit the beneficiary of the policy from

selecting a repair person or facility to repair damage to the

vehicle.

(c) Under [ Except as provided by rules adopted by the

commissioner, under ] an automobile insurance policy that is

delivered, issued for delivery, or renewed in this state, an

insurer may not directly or indirectly limit the insurer's coverage

under a policy covering damage to a motor vehicle that has been

owned by the insured for more than 36 months by:

(1) specifying the brand, type, kind, age, vendor,

supplier, or condition of parts or products or the repair process

that may be used to repair the vehicle; or

(2) limiting the beneficiary of the policy from

selecting a repair person or facility to repair damage to the

vehicle.

(d) In settling a liability claim by a third party against

an insured for property damage claimed by the third party for damage

to the third party's motor vehicle that has been owned by the third

party for 36 months or less and that was a new motor vehicle when

delivered to the third party, an insurer:

(1) shall require that a part, product, or repair

process used to repair the vehicle be the original equipment

manufacturer's or distributor's part, product, or repair process,

unless the third-party claimant opts to use non-original equipment

in accordance with Subsection (f); and

(2) may not require the third-party claimant to use a

particular repair person or facility to repair damage to the

vehicle.

(e) [ (b) ] In settling a liability claim by a third party

against an insured for property damage claimed by the third party to

a motor vehicle that has been owned by the insured for more than 36

months , an insurer may not require the third-party claimant to have

the motor vehicle repairs made by a particular repair person or

facility or to use a particular brand, type, kind, age, vendor,

supplier, or condition of parts or products or a particular repair

process .

(f) An insured or third-party claimant may opt to accept the

use of non-original equipment in the repair of the insured's or

claimant's motor vehicle by signing a written disclosure. The

disclosure must:

(1) be signed before repair of the vehicle begins;

(2) be delivered as an attachment to a written

estimate provided for the repair of the vehicle;

(3) be written in at least a 12-point font; and

(4) include the following language:

"I am opting to accept the use of a non-original equipment

manufacturer's or distributor's part, product, or repair process in

the repair of my vehicle, and I understand and agree that:

1. the attached repair estimate is based on the use of

a non-original equipment manufacturer's or distributor's part,

product, or repair process that is supplied by a manufacturer or

distributor that is not my motor vehicle's manufacturer or

distributor; and

2. the warranty for the non-original equipment

manufacturer's or distributor's part, product, or repair process is

provided by the manufacturer or distributor of that part, product,

or repair process and not by my motor vehicle's manufacturer or

distributor."

(g) An insurer that delivers, issues for delivery, or renews

an automobile insurance policy in this state may not require or

request that a repair person or facility use any specific

percentage of non-original equipment in the repair of a motor

vehicle.

SECTION 2. The change in law made by this Act applies only

to an insurance policy that is delivered, issued for delivery, or

renewed on or after January 1, 2026. A policy delivered, issued for

delivery, or renewed before that date is governed by the law as it

existed immediately before the effective date of this Act, and that

law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2025.