R.I. Senate backs auto-body shop backed repair bill

May 16--PROVIDENCE, R.I. -- In the annual State House war between the state's auto-body shop owners and the insurance industry, the auto-body shop owners won a round Tuesday with an assist from the three top Democrats in the state Senate.

The Senate unanimously approved a bill that the auto-body shop owners have sought for years to free them from insurance industry mandates on the kinds of parts they use when repairing crash-damaged vehicles. The sponsors: Senate President Dominick Ruggerio, Senate Majority Leader Michael McCaffrey and Senate Majority Whip Maryellen Goodwin.

The body shops' lobbyist is former Rep. Peter Petrarca, the lawyer-son of John Petrarca, the founder of Providence Auto Body and long-time leader in the Auto Body Association of Rhode Island.

This year's debate centers on replacement parts, which typically fall into two categories: those supplied by the original equipment manufacturers (OEM) for each vehicle under their own name, and those described as "after-market" parts that may or may not have been produced by the same manufacturer in the same factory.

At its most basic, the bill extends from 30 months to 48 months-from-manufacture the period during which an insurer is banned from requiring a repair shop to use aftermarket parts without the written consent of the vehicle owner. It also links the kinds of repairs allowed to those recommended by the original equipment manufacturers. The bill now goes to the House for consideration.

The auto-body shops and their legislative backers contend they are looking out for the consumer by guaranteeing that those with cars four years old or newer get replacement parts made by the original-equipment-manufacturer for their vehicles. To do otherwise puts the drivers at risk and potentially jeopardizes warranties, they argue.

"The insurance companies want you to use aftermarket parts after your accident because it's cheaper for them," Providence Auto Body said in a 2015 blog post.

"What this bill seeks to do -- and only do -- is allow the consumer the choice," said Sen. Frank Lombardi, D-Cranston. "I can't imagine someone with a car as beautiful as Leader Algiere's car to actually put aftermarket parts in his car or in my car, no less," he said, in jest, of Senate Minority Leader Dennis Algiere, R-Westerly.

But the state's insurers -- and Rhode Island-based parts manufacturers, including 55-employee LKQ Corporation facility in Cumberland -- contend the legislation marks the latest in a years-long effort by the politically connected auto-body shop owners to increase their own profits by driving up costs.

For what it's worth: Ruggerio received nine $1,000 political contributions totaling $9,000 from people affiliated with Reliable Collision Repair, Casale Auto Body, Auto Body Concepts and Providence Auto Body during the first quarter of this legislative year. McCaffrey received at least $7,000 from the auto-body lobby during the first quarter.

"More than a decade of special interest bills promoted by the Auto Body Association of Rhode Island have resulted in Rhode Island's 700,000 licensed drivers paying some of the highest auto-repair costs and auto-insurance premiums in the nation," said Frank O'Brien, a vice president at the Property Casualty Insurers Association of America.

"This has absolutely nothing to do with safety and everything to do with increasing auto-body shops' profits at the expense of Rhode Island drivers who could end up paying THE highest auto insurance premiums in the nation," he said.

-- kgregg@providencejournal.com

(401) 277-7078

On Twitter: @kathyprojo

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