Bill May Reduce Auto Repair Costs

Repairing one's automobile after an accident can be costly for consumers - even after auto insurance kicks in.

This is because design patents often reduce the availability of parts frequently damaged in accidents, like fenders and doors, according to a recent report by the Insurance Journal. The Property Casualty Insurers Association of America recently testified before Congress in support of a bill that would increase access to these replacement parts.

The "Access to Repair Parts Act" aims to keep insurance and repair costs down by prohibiting companies from using design patents in an anticompetitive manner. These patents are used on whole vehicles as well as individual parts.

"Auto manufacturers justifiably use design patents to protect the overall design of their cars from the other car companies they compete with in the primary market," Bob Passmore, PCI senior director of personal lines, said, "but some manufacturers are also using them in an unjustifiable way - to keep competitors out of the market for replacement crash parts."

The Access to Repair Parts Act was first introduced in Congress in June, 2009. The bill, sponsored by Rhode Island senator Sheldon Whitehouse, has been referred to the Committee on the Judiciary for further review.

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