Georgia Bill Proposes Ban on Non-OEM Parts

February 2, 2000

In Georgia, a new House Bill (214) proposes a restriction on the use of generic auto replacement parts.

The National Association of Independent Insurers (NAII) said the restriction could end up costing consumers more money for auto repairs and insurance.

H.B. 214, introduced by Rep. Carl Rogers (D-20th District), prohibits insurance companies from requiring the use of generic replacement parts when repairing a vehicle that is less than three years old.

The bill is scheduled to be heard today by the House Insurance Committee.

James. S. Taylor, southeast regional manager for the NAII, said the bill is simply bad policy.

“Generic auto parts save consumers millions of dollars each year. If HB 214 becomes law, the competition between carmakers and other parts manufacturers will be eliminated, resulting in increased auto repair costs and eventually higher insurance premiums for consumers,” Taylor said.

Taylor explained that the competition between generic aftermarket part manufacturers and original part manufacturers keeps the aftermarket part cost down.

“The proposal just doesn’t make sense. Regardless if you are buying generic prescription drugs, clone computers or generic auto parts, competition is the key to controlling costs and increasing quality,” Taylor said.

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