The Montana Senate has passed Senate Bill 356 (SB356) with an overwhelming 49-1 vote, moving the legislation to the House Business & Labor Committee for further review. The bill aims to ensure that carriers cover original equipment manufacturer (OEM) repair procedures, particularly those related to safety inspections following vehicle collisions.
Senator Barry Usher, who sponsored the bill, stressed the importance of adhering to manufacturer-recommended safety protocols, particularly for seatbelts and airbags. He noted that some insurers have been resistant to covering these essential inspections, stating, "This [bill] gets them in line and guarantees more safety for the consumers."
The proposed legislation would prevent insurance companies from instructing repair shops to ignore OEM repair guidelines or skip necessary safety inspections. However, it does not prohibit the use of alternative repair parts, focusing instead on ensuring that repair practices align with OEM safety standards.
The bill has garnered significant support from key players in the automotive and insurance industries, including the Alliance for Automotive Innovation, Ford, and General Motors. Ted Culbertson, president of the Montana Collision Repair Association (MCRA), emphasized the importance of OEM procedures in maintaining vehicle safety standards. "When it comes to the people who design and crash test the cars, they understand what needs to happen for the vehicles to be restored to max standards," Culbertson stated.
Paul Flores, vice president of MCRA, reinforced this perspective, calling OEM procedures the "gold standard" within the collision repair industry and a vital tool in ensuring that Montana consumers receive the safest possible repairs. John MacDonald, representing Auto Innovators, also weighed in, emphasizing the complexity of modern vehicles equipped with advanced driver assistance systems (ADAS) and the necessity of following precise manufacturer repair protocols. "We firmly believe that the OEM procedures should guide the work that's done," MacDonald said.
While the bill has strong industry backing, there has been some opposition from insurance representatives. Aimee Grmoljez, a legal representative for the American Property Casualty Insurance Association, accused the bill of being “vague,” and said it would increase costs for consumers in the state, which she claims has the third highest repair costs in the U.S.
Greg Van Horssen, a State Farm representative, agrees. “We have an obligation to return a car to its pre-accident condition, and we try to do that as cheaply and as reasonably as possible,” Van Horssen said. “Any time the cost of repair goes up, so does your insurance premiums, and you know what your insurance premiums are doing in the past five years or so.”
Van Horssen said the vagueness of the bill would cause prices to increase.
“We do support and would support and do follow specific technical procedures but not position statements or general checklists or safety inspection checklists because they are general,” Van Horssen said. “They are in the manufacturer’s book. These are not repair procedures. They are suggestions, and we think this bill would require us to follow that, and we believe that it would result in an astronomical increase to your insurance premiums.”
Montana is not the only state considering such legislation. Similar bills have been introduced in other states, including Texas and New York, as policymakers push for stricter regulations ensuring that insurance companies adhere to OEM repair guidelines. Texas has proposed Senate Bill 1429, which would require the use of OEM parts and procedures for vehicles owned by the insured for three years or less, while New York’s Assembly Bill A00245 seeks to mandate adherence to OEM repair guidelines across the state.
Despite these efforts, few states currently have laws explicitly requiring insurance providers to cover OEM repair procedures. The debate continues as lawmakers weigh consumer safety against potential increases in repair and insurance costs. As SB356 progresses through the Montana House, discussions on its implications for the automotive and insurance industries are expected to continue.
