House approves bill requiring insurers to disclose replacement-part types to policyholders

SALT LAKE CITY — The Utah House passed the fourth substitute of House Bill 1 19 on Feb. 24, imposing consumer-notification requirements on auto insurance companies about what kinds of replacement parts a policy covers.

Representative Jack, sponsor of HB 1 19, described the bill as a consumer-protection measure that requires insurers to notify policyholders when they purchase or renew a policy and again when a repair is made whether they have coverage for OEM parts, equivalent non‑OEM parts, or lower-cost value parts. "You should know when you buy the policy," Jack told colleagues, noting renewal and repair notices are part of the substitute language.

Supporters said the bill increases transparency for drivers who may later discover repairs used value parts. Representative Sheppard described a personal experience in which her vehicle received value parts after a collision without her knowledge and said the bill would prevent that surprise.

Some members argued the state should not mandate insurer disclosures and preferred voluntary market solutions. Representative Hansen urged deference to insurers and the free market; the House nonetheless approved the fourth substitute by a recorded vote of 67-1.

Representative Jack urged colleagues to consult the bill's negotiated fourth substitute, saying negotiators had worked to reach language both sides could accept.

The bill now goes to the Senate for further consideration.