Rhode Island passes bill that says insurers, shops must comply with vehicle owner decisions

WASHINGTON, D.C. — Rhode Island Bill 516 – which has passed in the state Senate – requires repair shops to inform consumers about their right to have original equipment manufacturer (OEM) parts used in the repair of their vehicle. The bill was introduced Feb. 15, 2007, by state Sen. Kevin Breene. This substitute version was recommended by the Senate Constitutional and Regulatory Committee in early June.

S.B. 516 applies to both insurers and auto body repair shops, and requires them to provide written notice to consumers that they are entitled to OEM parts for the repair of their vehicle. The majority of this bill was already in place under Rhode Island General Law. However, this version of the bill reinforces the vehicle owners’ right to choose which kinds of parts to use in the repair of the vehicle and states that the auto repair shops must comply with this choice. It also requires the insurers to pay for the services rendered by the auto repair shops regardless of which type of parts are chosen by the vehicle owner.

The revised bill includes this additional text: “For an automobile which is less than thirty (30) months beyond the date of manufacturer, the insurer and the auto body repair shop must provide a written notice to the vehicle owner that: (i) he or she may require the insurer to pay for and the auto body shop to install ‘original equipment manufacturer parts’ or ‘OEM parts’ in the repair of a motor vehicle body replacement; or (ii) he or she may require the insurer to pay for and the auto body shop to install ‘non-original equipment manufacturer parts’ (‘non-OEM parts’) in the repair of a motor vehicle body replacement. To comply with this provision, written notice may be provided on the appraisal written on behalf of the insurer and the estimate prepared by the auto body repair shop.”

S.B. 516 has been sent to the state House of Representatives and was referred to the House Committee on Corporations. If passed in the House, this act would take effect Jan. 1, 2008.

The Automotive Service Association (ASA) supports state disclosure laws that require insurers and auto collision facilities to obtain the written consent of vehicle owners as to what type(s) of replacement crash parts are being used to repair their vehicle.

For more information, visit www.TakingTheHill.com. Click on the link for Legislative Reports, then on Aftermarket Parts Disclosure Laws. There, you will find a link to a report detailing the aftermarket parts laws for each state. Under Rhode Island, the full text of Rhode Island Senate Bill 516 and an additional article regarding this bill are included.