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Relating to insurer restrictions and duties regarding repair of a motor vehicle covered under an insurance policy.
No significant fiscal implication to the State is anticipated.
SB 1538 would require a motor vehicle insurer to require that a part, product, or repair process used to repair a vehicle that was purchased new and is under three years old, is the manufacturer’s or distributor’s original equipment and would prohibit the insurer from requiring the beneficiary of a motor vehicle insurance policy use a specific person or facility to repair the damage.
The bill would also allow the beneficiary of such a policy to opt-out of the original equipment requirement.
Texas Action opposes SB 1538 because it violates the limited government and free market principles. The state should not be in business of placing or increasing insurance coverage mandates. Distorting the market through mandates leads to fewer choices and higher costs for consumers.