RHODE ISLAND UPDATE ON OEM PARTS
The Rhode Island State Senate passed a bill earlier this year, SB 2440, aimed at limiting insurance companies’ ability to refuse coverage for OEM parts in specific repair situations.
Under current Rhode Island law, insurers cannot mandate the use of non-OEM parts for vehicles less than 48 months old unless the vehicle owner consents in writing. The newly approved bill extends this protection, forbidding insurance companies from refusing OEM parts for vehicles aged 48 to 72 months, provided the repairer has the vehicle owner’s written consent.
The bill does not affect the repair or replacement of motor vehicle glass, focusing solely on other OEM parts.
Supporters of the bill argue that using OEM parts ensures that repairs meet the original safety and performance standards set by the vehicle’s manufacturer.
Critics, however, believe that it could increase repair costs and, consequently, insurance premiums.
The legislation was specific in that insurers were from now on to notify their claimants in writing on non-original accident damage parts that were fitted in the repair at hand and obtain written concessions on their replacement to give the repair company written consent to continue.
Added to this, no insurance company would require the use of aftermarket alternative body parts when negotiating vehicle repairs for these 48/72-month-old vehicles in question. The new law is aimed at stopping insurers seemingly acting in bad faith with unfair consumer claim practises.
