HB 636: Enact the Auto Insurance Transparency Act
The bill aims to increase transparency in the auto insurance industry. It requires insurers to disclose the use of aftermarket parts in repairs, allowing consumers to make informed decisions. Insurers must clearly identify aftermarket parts and provide estimates that include the cost of using original equipment manufacturer (OEM) parts. Consumers have the right to choose OEM parts, even if they are not fully covered by their policy, as long as they agree to pay the difference. The bill also prohibits insurers from using non-OEM parts in repairs without the consumer's consent and requires insurers to offer OEM part repair coverage as an option. Violations of the bill can result in fines and penalties.<br>This act requires auto insurance policy summaries to be accurate and free of false, misleading, or deceptive representations. The policy summary must be clear and easy to understand. The…
| Feb. 04, 2026 | Referred to committee: Insurance |
| Dec. 23, 2025 | Introduced |
As Introduced
136th General Assembly
Regular Session
H. B. No. 636
2025-2026
Representative Johnson
To amend section 1345.81 and to enact sections 1
3937.51, 3937.52, 3937.53, and 3937.54 of the 2
Revised Code to require certain disclosures, 3
allow consumer choice concerning the use of 4
aftermarket motor vehicle parts, to require the 5
offering of coverage for original equipment 6
manufacturer parts, and to name this act the 7
Auto Insurance Transparency Act. 8
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That section 1345.81 be amended and sections 9
3937.51, 3937.52, 3937.53, and 3937.54 of the Revised Code be 10
enacted to read as follows:
Sec. 1345.81.
(A) As used in this section:
(1) "Aftermarket-crash-Replacement part" means a 13
replacement-for-any-of-the-nonmechanical-sheet-metal-or-plastic- 14
parts-that-generally-constitute-the-exterior-part-or-component_ 15
of a motor vehicle, including inner and outer panels designed to 16
replace a similar part or component as originally equipped by 17
the manufacturer of a motor vehicle.
(2) "Nonoriginal equipment manufacturer aftermarket erash- 19
replacement part" or "non-OEM aftermarket erash-replacement 20
part" means any ~~aftermarket crash~~ replacement part that is not made by or for the manufacturer of the motor vehicle.
(3) "Repair facility" means any motor vehicle dealer, garage, body shop, or other commercial entity that undertakes the repair of a motor vehicle or the replacement of those parts that generally constitute the exterior of a motor vehicle parts.
(4) "Installer" means any individual who actually performs the work of replacing or repairing parts of a motor vehicle.
(5) "Insurer" means any individual serving as an agent or authorized representative of an insurance company, involved with the coverage for repair of the motor vehicle in question.
(6) "Original equipment manufacturer replacement part" and "OEM replacement part" mean any replacement part that is made by or for the manufacturer of the motor vehicle.
(7) "Automobile insurance policy" has the same meaning as in section 3937.30 of the Revised Code.
(8) "Motor vehicle dealer" has the same meaning as in section 4517.01 of the Revised Code.
(B) Any insurer who provides an estimate for the repair of a motor vehicle based in whole or in part upon the use of any non-OEM aftermarket ~~crash~~ replacement part in the repair of the motor vehicle and any repair facility or installer who intends to use a non-OEM aftermarket ~~crash~~ replacement part in the repair of a motor vehicle shall comply with the following provisions, as applicable:
~~(1)~~ (1) (a) If the person requesting the repair chooses to receive a written estimate, the insurer, repair facility, or installer providing the estimate shall ~~identify, clearly~~ include
in the written estimater_all of the following:
(i) Clear identification of each non-OEM aftermarket erash replacement part-and-shall-contain-a-written-:
(ii) An indication of whether OEM aftermarket replacement parts are readily available and, if so, whether using OEM aftermarket replacement parts would require the repair to be completed by another repair facility or installer:
(iii) A notice that the person requesting the repair has the right to choose OEM replacement parts, even if those parts are not fully covered by the person's automobile insurance policy, as long as the person agrees to pay the difference between the cost of the OEM replacement parts and the maximum policy coverage for the same part sourced from a non-OEM aftermarket replacement parts manufacturer:
(iv) A notice with the following language in ten-point or larger type: "This estimate has been prepared based upon the use of one or more aftermarket erash-replacement parts supplied by a source other than the manufacturer of your motor vehicle. Warranties applicable to these aftermarket erash-replacement parts are provided by the parts manufacturer or distributor rather than by your own motor vehicle manufacturer." Receipt-
(b) Receipt and approval of the written estimate shall be acknowledged by the signature of the person requesting the repair at the bottom of the written estimate.
(2) If the person requesting the repair chooses to receive an oral estimate or no estimate at all, the insurer, repair facility, or installer providing the estimate or seeking the person's approval for repair work to commence shall furnish or read to the person a written notice as described in division (B)
H. B. No. 636 Page 4
As Introduced
(1) of this section at the time that the oral estimate is given 78
or when the person requesting the repair gives approval for the 79
repair work to commence. If the person has chosen to receive an 80
oral estimate or no estimate, the written notice described in 81
division (B) (1) of this section shall be provided with the final 82
invoice for the repair. 83
(C) Any non-OEM aftermarket ~~crash~~ replacement part 84
manufactured after October 16, 1990, that replaces any of the 85
nonmechanical sheet metal or plastic parts that generally 86
constitute the exterior of a motor vehicle, including inner and 87
outer panels, shall have permanently affixed thereto, or 88
inscribed thereon, prior to the installation of the part, the 89
business name or logo of the manufacturer. 90
Whenever practical, the location of the affixed or 91
inscribed information upon the part shall ensure that the 92
information shall be accessible after installation. 93
(D) An insurer, repair facility, or installer may use a 94
salvage motor vehicle part in the repair of a motor vehicle, if 95
the salvage motor vehicle part is of a like kind and quality to 96
the part in need of repair and is sourced from a salvage motor 97
vehicle dealer licensed under Chapter 4738. of the Revised Code. 98
(E) If an automobile insurance policy does not cover OEM 99
replacement parts, the insurer shall allow a claimant to 100
complete the repair using OEM replacement parts so long as the 101
claimant pays any difference between the cost of OEM replacement 102
parts and the maximum policy coverage for the same part sourced 103
from a non-OEM aftermarket replacement part manufacturer. 104
(F) Any violation of this section by an insurer is an 105
unfair and deceptive act or practice in the business of 106
insurance, as defined in section 3901.21 of the Revised Code, ..... 107
and is subject to, in addition to the penalties prescribed in ..... 108
section 3901.22 of the Revised Code, disciplinary action under ..... 109
Chapter 3937. of the Revised Code. ..... 110
(G) Any other violation of this section in connection with ..... 111
a consumer transaction as defined in section 1345.01 of the ..... 112
Revised Code is an unfair and deceptive act or practice as ..... 113
defined by section 1345.02 of the Revised Code. ..... 114
Sec. 3937.51.
As used in sections 3937.51 to 3937.54 of ..... 115
the Revised Code: ..... 116
(A) "Automobile insurance policy" has the same meaning as ..... 117
in section 3937.30 of the Revised Code. ..... 118
(B) "Installer," "original equipment manufacturer ..... 119
replacement part," "OEM replacement part," and "repair facility" ..... 120
have the same meanings as in section 1345.81 of the Revised ..... 121
Code. ..... 122
(C) (1) "Original equipment manufacturer part repair ..... 123
coverage" and "OEM part repair coverage" mean any coverage, ..... 124
whether part of an automobile insurance policy, or which is ..... 125
supplemental to an existing automobile insurance policy, for the ..... 126
cost of using OEM replacement parts in the repair of a covered ..... 127
vehicle. ..... 128
(2) "Original equipment manufacturer part repair coverage" ..... 129
and "OEM part repair coverage" includes any added costs ..... 130
associated with the use of OEM replacement parts or when using ..... 131
OEM replacement parts would require the repair to be completed ..... 132
by another repair facility or installer. ..... 133
Sec. 3937.52.
Every insurance company delivering, issuing ..... 134
for delivery, or renewing an automobile insurance policy in this ..... 135
state that includes coverage for damages to, or the destruction ..... 136
of, the motor vehicle specifically identified in the policy ..... 137
shall clearly and conspicuously offer to the insured an option ..... 138
for the automobile insurance policy to include OEM part repair ..... 139
coverage. ..... 140
Sec. 3937.53.
(A) Nothing in sections 3937.51 to 3937.54 ..... 141
of the Revised Code shall be construed to require an automobile ..... 142
insurance policy to include OEM part repair coverage if a ..... 143
policyholder does not elect to include OEM part repair coverage ..... 144
with the automobile insurance policy in accordance with section ..... 145
3937.52 of the Revised Code. ..... 146
(B) Nothing in sections 3937.51 to 3937.54 of the Revised ..... 147
Code shall be construed to prohibit the actuarially justified ..... 148
adjustment of a premium for an automobile insurance policy when ..... 149
a policyholder elects to include OEM part repair coverage with ..... 150
the automobile insurance policy. ..... 151
Sec. 3937.54.
Any violation of section 3937.52 of the ..... 152
Revised Code is an unfair and deceptive act or practice in the ..... 153
business of insurance under sections 3901.19 to 3901.26 of the ..... 154
Revised Code. If the superintendent, by written order, finds ..... 155
that any person is about to engage, is engaging, or has engaged ..... 156
in a violation of this section, the superintendent may impose ..... 157
any or all of the administrative remedies set forth in divisions ..... 158
(D) (1) to (5) of section 3901.22 of the Revised Code. If the ..... 159
superintendent finds that the violation was due to gross or ..... 160
willful misconduct, the superintendent may order that person to ..... 161
reimburse any customer harmed by the violation or violations, ..... 162
including reimbursement or payment of insurance claims for which ..... 163
a loss occurred as a result of a customer's reliance upon a ..... 164
policy summary containing any false, misleading, or deceptive ..... 165
representation or statement. ..... 166
Section 2. That existing section 1345.81 of the Revised ..... 167
Code is hereby repealed. ..... 168
Section 3. This act shall be known as the Auto Insurance ..... 169
Transparency Act. ..... 170