AB 646

Under existing law, a warranty issued by the warrantor of a vehicle protection product constitutes an express warranty and does not constitute automobile insurance if the warrantor complies with various requirements, including that the warranty is in writing and provides, among other things, that the benefits are limited to the difference between the actual cash value of the stolen vehicle and the vehicle’s replacement cost, temporary vehicle rental expenses, reimbursement for insurance policy deductible, and registration fees and taxes on a replacement vehicle or a fixed amount for those benefits, and that the benefit is payable upon the theft of the vehicle. Existing law defines a vehicle protection product for these purposes to mean a vehicle protection device, system, or service that is installed on, or applied to, a vehicle, is designed to deter the theft of the vehicle, and includes a written warranty that provides specified incidental costs if the product fails to deter the theft of the vehicle. Existing law requires, except as specified, a dealer or person holding a retail seller’s permit who sells new or used vehicles equipped with a catalytic converter to permanently mark the catalytic converter with the vehicle identification number of the vehicle to which it is attached. This bill would expand the definition of a vehicle protection product to include a physical device, system, or service designed to prevent the unauthorized removal of a vehicle’s catalytic converter, and would limit the warranty benefit for this vehicle protection product to the actual cash value and replacement cost of the catalytic converter, temporary vehicle rental expenses, and reimbursement for the insurance policy deductible. The bill would require the benefit to be payable upon the theft of the catalytic converter from the vehicle, as specified. The bill would also require a seller to disclose a specified notice if this vehicle protection product is a body part marking product designed to permanently mark the catalytic converter.