The National Association of Mutual Insurance Companies and Nationwide Insurance say a proposed auto parts bill before Congress will both provide options for consumers minding their budgets and help sustain businesses in the current economy.

The Access to Repair Parts Act, proposed by Rep. Zoe Lofgren (D-Calif.) and Sen. Sheldon Whitehouse (R-R.I.), would create an exemption for repair parts in U.S. patent law, applying only to repair and replacement parts that restore an article’s original appearance.

Other supporters of the bill include the American Insurance Association, the Consumer Federation of America, Property Casualty Insurers Association of America and the Coalition for Auto Repair Equality.

Zoe Lofgren

The legislation, said Lofgren in a statement, was introduced to address the rising cost of replacement parts, as she said that original equipment manufacturer parts are 35% to 100% more expensive than non-OEM secondary repair parts.

“During these difficult economic times, consumers need as much help as they can get,” Lofgren said.

NAMIC and Nationwide both said this “repair clause” legislation would “preserve competition in the automotive replacement parts market, providing options for budget-conscious consumers and helping to keep businesses afloat in these tough economic times.”

Both said that aftermarket competition affords consumers an annual savings of up to $1.5 billion, but car companies have obtained an increasing number of design patents on visible crash parts, a move to block competitors from producing affordable alternatives.

“The Access to Repair Parts Act provides much needed protections to consumers,” said Kathy Mitchell, NAMIC’s director of federal affairs, in a statement. “A parts monopoly does not simply affect people who are in an accident. Decreased competition in the replacement parts market will likely lead to an increase in costs for consumers across the board.”

Nationwide said in a statement it “firmly believes” customers deserve a choice in the selection of replacement parts used to fix their cars after an accident. The insurer offers customers an optional “original equipment endorsement,” where allowed, on all covered repairs for as long as the customer owns or leases their vehicle.

“Nationwide is committed to supporting the ‘Access to Repair Parts Act’ and the protection it gives to consumers and the aftermarket industry,” said Terry Fortner, Nationwide vice president of claims. “Without a permanent legislative change to design patent law, consumers are left at a clear disadvantage and open market price competition is jeopardized.”