Nebraska committee hears bill to require OEM parts for vehicles 3 years old or newer

Senator Dan Quick, state senator for District 30-35 and the introducer of LB 111, told the Banking, Commerce and Insurance Committee the bill is meant to address consumer confusion and safety risks when insurers and repair estimators rely on aftermarket parts instead of original equipment manufacturer parts. "LB 111 is intended to address 2 specific issues for Nebraskans when they need a vehicle repaired after collision or some other insurable damage occurs to their vehicle," Quick said during the Jan. 1 committee hearing.

The bill would require insurers and shops to use OEM parts for vehicles 36 months (three years) old or newer, and would require insurers to disclose in writing when an estimate does not include OEM parts. Supporters argued the requirement would protect advanced safety systems and warranty coverage on newer cars; opponents said the change would reduce consumer choice and raise repair and insurance costs.

Why it matters: modern vehicles increasingly rely on sensors, cameras and other calibrated components that proponents say are engineered to OEM specifications. Several body shop owners and industry associations told the committee that aftermarket replacement parts sometimes fail to meet fit or calibration standards and can delay repairs or require rework that burdens vehicle owners. Opponents representing the aftermarket parts industry and insurers said similar or equivalent parts are widely available, help control repair costs, and that Nebraska already has Department of Insurance rules addressing fit, quality and performance.

Supporters' testimony

Ryan Clark, vice chairman of the Nebraska Auto Body Association and vice president of Eustis Body Shop, said that, under current practice, insurers often reimburse for "like, kind,…