The Vermont legislature is considering a bill that would regulate the use of aftermarket parts in vehicle repairs covered with insurance.
The bill, House 522, would prohibit insurers from requiring the use of aftermarket parts in repairs unless the parts had been approved by the Certified Automotive Parts Association , and would require the customer learn by the insurer of the utilization of aftermarket parts inside a repair.
If approved, the legislation would work on July 1.
The bill defines “aftermarket parts” as “sheet metal or plastic parts that generally constitute the exterior of an automobile, including inner and outer panels.” “Nonoriginal manufacturer” is understood to be “any manufacturer apart from the original manufacturer of the part.”
“An insurer shall not require using aftermarket parts in the repair of the automobile unless the aftermarket part reaches least equal in like, kind, and quality to the original part in terms of fit, quality, and performance and has been certified through the Certified Automotive Parts Association,” the balance states.
The bill also directs any insurer that needs using aftermarket parts “shall consider and become responsible for the price of any modifications that could become necessary when making a repair,” which appears to contradict the idea that the various components would be equal in like, kind and quality to OEM parts.
Insurers would be required to identify clearly around the repair estimate which aftermarket parts, if any, were installed on a vehicle.
“If aftermarket parts are installed, the insurer shall disclose towards the claimant in writing, either on the estimate or on a separate document attached to the estimate, the following information in bold-faced, capitalized font not smaller than 12-point type: THIS ESTIMATE Continues to be PREPARED In line with the Utilization of NONORIGINAL MANUFACTURER PARTS. PARTS USED IN THE REPAIR OF YOUR VEHICLE BY Apart from The initial MANUFACTURER, ALSO KNOWN AS AFTERMARKET PARTS, ARE REQUIRED TO BE AT LEAST EQUAL IN LIKE, KIND, AND QUALITY When it comes to FIT, QUALITY, AND PERFORMANCE TO THE ORIGINAL MANUFACTURER PARTS They're REPLACING” .
All “aftermarket parts” manufactured after Jan. 1, 2023, would have to carry “sufficient permanent identification so as to identify their manufacturer,” which identification would need to be visible after installation, if possible.
Insurers wouldn't be allowed require utilization of aftermarket parts on vehicles which are 2 yrs old or newer and have 30,000 or fewer miles on the odometer.
The bill does not address the use of used, recycled or OEM parts. It had been given an initial reading on Jan. 7 and referred to the Committee on Commerce and Economic Development.
State Rep. Patricia McCoy , who filed the bill, didn't respond to requests from Repairer Driven News for comment.
Ed Couillard, who owns the Burlington Collision Center in Vermont’s largest city, said he has seen variation in the quality of aftermarket parts, including people with CAPA’s stamp of approval.
“I’ve been in this business for 16 years, and also over time I’ve found the standard, fit and finish is [sometimes] not up to the caliber of things i would want to send the doorway,” Couillard said. “I’ve had to fight with insurance providers many of the time.”
“How can you police it? Say, ‘only CAPA parts’? That’s not necessarily going to do much good,” he said.
Since its establishment in 1987, CAPA has certified that more than 128 million replacement parts have met or exceeded its standards.
One area of contrast between OEM parts and CAPA-certified aftermarket parts is in the recall process, as was recently illustrated in a case involving potentially damaged hoods on 2022-’21 Honda Pilots.
On Nov. 29, Honda issued a recall notice for 725,000 vehicles after it had been determined this too great of the gap between your grille and hood could lead to vibration that might damage the metal round the hood striker after extended high-speed driving.
Honda offered to reinforce the hood striker areas around the recalled vehicles and inspect the hood for related damage, according to Honda's written statement about the recall. Honda said it would replace hoods free of charge if related damage were found.
As a result of a that recall, CAPA decertified aftermarket 2022-2022 Honda Pilot hoods made by Gordon Auto Parts of the body Co. and Tong Yang Industry Co. However, the organization couldn't issue a formal recall, since it is not a manufacturer. Instead, it issued a “public safety notice,” directed at shops, and visual on its CAPA Tracker database.
“In the big event of a problem, CAPA will inform the repairer if a person of their repair orders contained that part,” Intertek/CAPA spokesperson Jillian Rahal said told Repairer Driven News.
CAPA decertifies, deletes and sends out Public Notices and Safety Alerts associated with various aftermarket components. These last two concepts were created after Intertek began administering CAPA in 2022.
CAPA offers this explanation of its decertification process:
“CAPA decertifies part numbers or individual part lot numbers if they have been found to no more adhere to any from the requirement of the applicable CAPA Standard,” CAPA wrote. “Decertification occurs if your part or part lot no more meets the CAPA Quality Standard requirements to which it was originally certified. CAPA may withdraw certification of the part or lot. A CAPA part number continues to be considered certified even if some production lots happen to be decertified. CAPA comes with an ongoing and thorough system of monitoring continued compliance, which may include random material testing or vehicle test fit, and marketplace monitoring including its complaint program.”
