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Probably nothing would happen on a day to day basis. I rarely have anyone in the passenger seat, and simply drove a different vehicle when I knew that I would have passengers.
It's unclear to me what would happen in the case of an accident with front airbag deployment. I was told, but have no way to verify, that the default action for the passenger side airbag, with the specific malfunction that I had, would be to deploy. I don't know what would happen with other restraint system malfunctions.
However, the concern for me was that my X3 was coming due for the annual vehicle inspection, and would fail because a piece of safety equipment was not functioning.
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