Utah Gov. Spencer Cox signed H.B. 119, the Automotive Repair Business Amendments, into law on March 18, according to the governor's official announcement. Under the law, written estimates must clearly identify any non-OEM aftermarket crash parts and include the required disclosure language when an insurer authorizes or specifies such parts.
The law takes effect May 6. A separate compliance deadline applies to insurers: policyholder notice requirements begin Oct. 1, applying to policies issued or renewed on or after that date.
What the Law Requires
The enrolled bill text sets out two distinct disclosure requirements, each with direct implications for how shops document and communicate repairs.
The first applies to insurers. For policies issued or renewed on or after Oct. 1, insurers must provide policyholders with a written notice, in at least 10-point font, stating that aftermarket crash parts may be used in a covered repair and that those parts must be at least equivalent in kind and quality in terms of fit, quality, and performance to the original parts they replace.
The second applies directly to repair estimates. When an insurer authorizes or specifies a non-OEM aftermarket crash part, the written estimate must clearly identify each non-OEM aftermarket crash part.
The insured's copy of the estimate must also include a disclosure in at least 10-point font, appearing on or attached to the estimate, stating that the estimate was prepared using parts not made by the original vehicle manufacturer, that those parts must be at least equivalent in kind and quality in terms of fit, quality, and performance, and that any applicable warranties are provided by the part manufacturer or distributor rather than the vehicle manufacturer.
One provision of the signed law warrants particular attention.
Section 31A-22-319(5) explicitly states that the Utah Insurance Department and the insurance commissioner "are not required to administer or otherwise enforce" the estimate disclosure requirements.
No alternative enforcement authority is identified in the statute for that provision, meaning the law does not spell out who, if anyone, is making sure insurers follow that rule. A Growing Legislative Trend
Utah's action is part of a pattern of state-level activity on aftermarket parts disclosure.
Ohio is among the states now advancing similar legislation. Ohio H.B. 636, known as the Auto Insurance Transparency Act, would go further than Utah's measure by requiring insurers to offer OEM-only coverage options and giving policyholders the right to choose OEM parts, with the option to pay any difference in cost.
At the federal level, the Right to Equitable and Professional Auto Industry Repair Act, known as the REPAIR Act, addresses vehicle data access and repair information broadly. But that provision, if enacted, could affect the availability and pricing of aftermarket parts used in collision repair.
What Utah Shops Should Do
Update estimate templates before May 6. Any written estimate where an insurer authorizes or specifies a non-OEM aftermarket crash part must clearly identify each such part and include the full statutory disclosure language, in at least 10-point font, on or attached to the customer's copy.
Use the statute's terminology. The law defines "OEM aftermarket crash parts" as parts made for or by the vehicle manufacturer, and "non-OEM aftermarket crash parts" as parts not made for or by the manufacturer. Estimates and documentation should reflect those definitions consistently.
Note the insurer notice timeline. Beginning Oct. 1, insurers must provide policyholders with written notice about potential aftermarket parts use at the time of policy issuance or renewal.
Keep records showing parts used were up to standard. The law requires that any non-OEM aftermarket crash parts authorized or specified must be at least equivalent in kind and quality in terms of fit, quality, and performance. Maintaining records that support that standard will be important in the event of a dispute.
