Our Positions | Aftermarket Parts


Auto insurers pay billions of dollars each year to repair policyholders’ vehicles when they are involved in accidents. These repair costs have a direct impact on the cost of insurance coverage, so insurers are interested in identifying ways to ensure the repair process is as cost-effective and efficient as possible. Aftermarket crash parts – including exterior sheet metal and plastic parts such as fenders, hoods, and door panels – are frequently much less expensive than original equipment manufacturer parts, with no difference in the safety of the repaired vehicle, making their use in repairs beneficial to consumers. Over the years there have been many attempts by those who profit from the use of OEM repair parts to limit the availability and use of less expensive aftermarket parts when cars are repaired following accidents.

A significant number of states require that the use of aftermarket parts be disclosed to consumers prior to a repair, and many states require that any aftermarket parts be “of like kind and quality” to OEM parts. The National Association of Insurance Commissioners has adopted a model regulation containing such requirements.

In 2010, NAMIC commissioned a public policy paper that examined the implications of removing aftermarket parts from the competitive marketplace. It found that if aftermarket parts could no longer be used for insured auto repairs, annual auto insurance premiums would increase on average by $109 per vehicle.

NAMIC Position

NAMIC believes consumers should have the right to choose whether to have their vehicles repaired using non-original equipment manufacturer parts and opposes legislative and regulatory proposals to prevent that choice by eliminating or restricting the availability of aftermarket parts.

New Hampshire: Legislature Sustains Governor’s Veto OEM Procedure Legislation

September 24, 2019 The New Hampshire House on Sept. 18 sustained the veto of HB 664 by a vote of 241-132, which was eight votes short of the two-thirds requirement to override a veto. HB 664 would have required the use of OEM procedures in auto body repair claims... Read more

Tariffs, USMCA Set to Dominate Trade Agenda

September 3, 2019 The United States imposed a new 15 percent tariff on Chinese goods Sept. 1, including clothing, tools, and electronics. China retaliated with new tariffs that target soybeans, crude oil, and pharmaceuticals. The dueling tariffs are the latest... Read more

New Hampshire: Governor Vetoes OEM Procedure Legislation

August 20, 2019 Gov. Chris Sununu vetoed HB 664, which would have required the use of original equipment manufacturer procedures in auto body repair claims and create a strict liability standard. As has been shown in other New England states that have gone down this... Read more

Talks Continuing Between House Leaders, Administration on USMCA

August 12, 2019 Progress on the U.S.-Mexico-Canada Agreement, which is President Trump’s replacement for the North American Free Trade Agreement, has been moving forward with Democratic leaders in the House of Representatives over the past month. Read more

Senate Committee Discusses USMCA

August 5, 2019 The Senate Finance Committee held a hearing July 30 titled “The United States-Mexico-Canada Agreement” that featured six witnesses... Read more

Contacts

Jon Bergner
Assistant Vice President – Public Policy and Federal Affairs

202.580.6751

  Jon