The bill 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's parts unless the insured opts for non-original equipment. Additionally, insurers cannot limit the insured's choice of repair person or facility. 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 choice of repair personnel.

Furthermore, the bill introduces a requirement for a written disclosure if an insured or third-party claimant opts to use non-original equipment, ensuring that they are informed about the implications of this choice. The disclosure must be signed before repairs begin and include specific language regarding the use of non-original parts. The bill also states that insurers cannot mandate 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, with the act taking effect on September 1, 2025.

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