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Pennsylvania Democratic Senators Announce Legislation

14 October 1999

Pennsylvania Democratic Senators Announce Legislation to Give Vehicle Owners High Quality Accident Repairs, Choice of Repair Shops

    HARRISBURG, Pa., Oct. 13 -- Automobile insurers could not
require the use of substandard "aftermarket" parts for vehicle repairs or
require or encourage accident victims to use specific auto body repair shops
under legislation announced today by state Sens. Michael A. O'Pake and Jay
Costa Jr.
    O'Pake said vehicles damaged in accidents should be restored to their
original condition.  He said professionals who repair accident damage say that
aftermarket parts required by many insurers are inferior to original equipment
parts.
    "Professional repairmen tell us they are pressured -- and often required
-- by insurers to use replacement parts whose quality is untested, or whose
quality has been found to be significantly inferior to the original parts,"
said O'Pake (D-Berks).
    O'Pake will introduce legislation that would require the use of Original
Equipment Manufacturer's (OEM) parts, or parts of equal quality, to repair
collision damage during the vehicle's warranty period, or for five years from
the date of purchase, whichever is longer.
    Costa will introduce separate legislation that would prevent insurers,
appraisers and independent insurance agents from recommending or soliciting a
request for a recommendation that accident victims use designated repair
shops.
    "People who pay hundreds, and in some cases thousands of dollars a year in
insurance premiums should have the freedom to decide who repairs their
vehicles," Costa said.  "Repair shops with ties to an insurance company may be
less convenient, less responsive to the needs of consumers and in some cases
may have conflicts of interest that result in substandard repairs."
    Under Costa's bill, Pennsylvania vehicle owners would decide where to have
their vehicle repaired after an accident.
    O'Pake said current Pennsylvania law allows the substitution of
aftermarket parts.  He said he and other legislators tried unsuccessfully to
address problems caused by substandard aftermarket parts when new regulations
were developed recently by the state Insurance Department.  He noted that the
Independent Regulatory Review Commission said the problem would have to be
addressed legislatively.
    A recent verdict against State Farm Mutual Insurance in Illinois also
demonstrated the need for action at the state level, O'Pake said.  After State
Farm customers won a $1.2 billion verdict over the use of aftermarket parts,
O'Pake said State Farm defended its practices by saying the company complied
with state laws governing the vehicle repairs.
    "We need new laws to protect vehicle owners against the use of substandard
aftermarket parts and to preserve their right to choose where their vehicle is
repaired," O'Pake said.