Relating to insurer restrictions and duties regarding repair of a motor vehicle covered under an insurance policy.
Summary
SB 1429 would revise Texas Insurance Code provisions governing how automobile insurers handle repairs to damaged motor vehicles under an insurance policy. For vehicles owned by the insured for 36 months or less and originally delivered as new vehicles, the bill would require insurers to use original equipment manufacturer (OEM) parts, products, or repair processes unless the insured affirmatively opts for non-original equipment through a written disclosure. It would also prohibit insurers from steering policyholders or third-party claimants to a particular repair shop or facility.
For vehicles owned longer than 36 months, the bill would continue to bar insurers from requiring a particular repair facility or a particular brand, type, age, vendor, supplier, condition, or repair process for parts and repairs, while removing language that referenced commissioner-adopted rules. The bill also applies similar protections in third-party liability claims involving damaged vehicles, and it prohibits insurers from requiring or requesting that a repairer use any specific percentage of non-original equipment. The opt-in disclosure for non-original equipment must be signed before repairs begin and must include specified consumer-warning language about warranty responsibility.
Impact
The bill would amend Section 1952.301 of the Insurance Code and change the rules governing insurer conduct in auto damage claims and repair estimates. It would create a clearer statutory preference for OEM parts and repair processes for newer vehicles, preserve consumer choice to use non-original equipment through a formal written waiver, and restrict insurer influence over repair shop selection and parts sourcing. The bill would apply only to policies delivered, issued, or renewed on or after January 1, 2026, with an effective date of September 1, 2025.
Sentiment
Based on the bill text and available legislative history, the measure appears to be framed as a consumer-protection and repair-quality bill, with an emphasis on preserving vehicle value, repair integrity, and consumer choice. There are no recorded votes or committee transcripts in the provided materials, so no formal opposition or support is documented here. The structure of the bill suggests likely support from repair-industry or consumer advocates and possible concern from insurers over increased repair costs and reduced flexibility in claims handling.
Contention
The main points of contention are likely to be the bill’s requirement that insurers use OEM parts and repair processes for newer vehicles, the prohibition on steering claimants to specific repair facilities, and the ban on insurers specifying a percentage of non-original equipment. Insurers may object that these provisions limit cost control and claims management, while consumer advocates and repair professionals may support them as safeguards against lower-quality repairs and insurer interference. Another potential issue is the written disclosure requirement for opting into non-original equipment, which could be seen either as an informed-consent protection or as an added procedural burden.
Prohibits automobile insurance policies from disclaiming uninsured or underinsured motorist coverage based on use of motor vehicle owned by insured's employer.
Prohibits automobile insurance policies from disclaiming uninsured or underinsured motorist coverage based on use of motor vehicle owned by insured's employer.