Utah bill would require Insurance Department market value formula, like kind parts
Proposed amendments to Utah law would require auto insurance liability policies to cover the difference in market value of crashed vehicles according to a formula determined by the Insurance Department, and place certain parameters on replacement parts usage.
If the legislation is passed, the Insurance Department would establish a formula for insurers to calculate the difference in pre- and post-accident market value under the Utah Administrative Rulemaking Act.
House Bill 119 would also prohibit policy coverage from being reduced or “stepped down” if the covered driver and/or vehicle is at fault.
As for parts, unless the insurer gives the insured notice in writing, it may not permit the use of “non-OEM aftermarket crash parts” in the
repair of an insured’s motor vehicle, according to the bill.
When an insurer intends to use “non-OEM aftermarket crash parts,” the bill states that repair facilities or installers must “use non-OEM aftermarket crash parts that are substantially equivalent in quality and function to OEM aftermarket crash parts.” And vehicle owners would have the right to take legal action against a repair facility or installer that fails to meet this stipulation.
If the vehicle owner takes the facility or installer to court and it’s proven that the subsection was violated, the vehicle owner will be awarded actual damages caused by the violation, according to the bill.
If passed, the effective date would be May 6. The bill was introduced on Dec. 30 by Rep. Colin W. Jack (R-District 73). As of Tuesday, no committee hearings had been scheduled on the bill. Jack introduced similar legislation in 2025, but it didn’t make it out of committee.
Similar parts legislation was recently filed in Ohio to require auto insurance companies to offer coverage of OEM replacement parts.
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