The bill, S.B. No. 1429, amends Section 1952.301 of the Texas Insurance Code to establish new limitations and duties for insurers regarding the repair of motor vehicles covered under insurance policies. It specifies that for vehicles owned by the insured for 36 months or less, insurers must require the use of original equipment manufacturer (OEM) parts unless the insured opts for non-original equipment. Additionally, insurers cannot limit the insured's choice of repair facilities. For vehicles owned for more than 36 months, insurers are prohibited from imposing restrictions on the type of parts or repair processes used, as well as from dictating the repair person or facility.

The bill also introduces a requirement for a written disclosure if an insured or third-party claimant chooses to use non-original equipment, ensuring they are informed about the implications of this choice. Insurers are barred from mandating a specific percentage of non-original equipment in repairs. The changes will apply to insurance policies delivered, issued, or renewed on or after January 1, 2026, while policies prior to this date will continue to be governed by existing law. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Insurance Code 1952.301 (Insurance Code 1952)