MVPPA began in 2007 as the Ancillary Products Coalition, an informal coalition of companies engaged in the motor vehicle service contract business. These companies were offering ancillary products such as paintless dent repair and tire and wheel coverage as additional benefits under their motor vehicle service contracts. However, the majority of states do not expressly regulate ancillary products, either in service contract law or as stand-alone products, which creates a risk that these products could be considered insurance by state regulators. The Ancillary Products Coalition was formed in order to clarify the status of motor vehicle ancillary products and ensure that the products are sold in a consistent manner.
Since forming in 2007, the Ancillary Product Coalition successfully passed ancillary product legislation in California, Ohio, Texas, Washington, and Wyoming. After these legislative successes, the companies comprising the Ancillary Products Coalition decided to create a new trade association to focus specifically on motor vehicle ancillary products. This trade association was formed in 2011 as the Motor Vehicle Ancillary Products Association, and many of the companies comprising the Ancillary Products Coalition have joined the association. In 2017, the association was renamed to the Motor Vehicle Protection Products Association. The purpose of MVPPA is to solidify the regulatory status of motor vehicle ancillary products and educate regulators and consumers about the benefits associated with these valuable products.
MVPPA has developed model legislation to expressly authorize the sale of stand-alone ancillary products and eliminate the risk that these products will be considered insurance. The model act includes tire and wheel coverage, paintless dent repair, windshield repair, key-fob replacement, appearance care, and other ancillary products. The model act also includes vehicle theft protection products in states that do not currently regulate such products.
In 2012, MVPPA successfully lobbied for the passage of legislation in Nebraska that authorized the sale of multiple ancillary products under that state’s vehicle service contract laws. The Association also tracked the passage of ancillary product legislation in Wisconsin and New York. In 2013, MVPPA will expand its lobbying initiatives to other states that do not yet have statutes or rules authorizing motor vehicle ancillary products. Ultimately, MVPPA aims to authorize the sale of stand-alone ancillary product contracts in all 50 states through legislative or regulatory solutions.