Aftermarket Parts – Recent News

There has been a lot of news recently over the use of some aftermarket (A/M) parts, and whether or not they maintain the same quality and safety standards as original equipment manufacturer (OEM) parts. At a collision industry conference meeting in November and January, I-CAR trainer Toby Chess performed demonstrations comparing A/M and OEM parts, and the difference in structural integrity was obvious. He also outlined studies he performed in which he randomly selected various A/M and OEM structural replacement parts for comparison. Parts in this study included radiator core supports, front and rear bumper reinforcement bars, bumper absorbers, and bumper brackets.

There were noteworthy differences in every comparison study, in terms of the materials used and the construction of the parts. This is important because a big role these parts play is to transfer energy occurring from a collision, and this can be severely impacted if the parts are not constructed to the proper standards. Additionally, this energy transfer plays a huge role in the response of vehicle safety restraint systems (SRS), and this could affect how airbags function during a collision. However, there were also tests performed with A/M parts that were manufactured by companies who used the same materials as the OEM, and who used 3rd party testing, and these parts performed better in the tests.

This demonstration set the wheels in motion for associations and some insurance companies to take action on the issue. First, the Automotive Body Parts Association cautioned its entire membership that it should review with its suppliers the quality and testing of structural replacement parts, and if testing is not available, or inadequate, these parts should not be used. The Taiwan Auto Body Parts Association also took notice and advised its members to stop selling and manufacturing non-certified parts.

Now it seems as some insurance companies are noticing the potential consequences of continuing to use some A/M parts after seeing the results of the above demonstration. In January, GEICO Insurance sent a notice to its adjusters that it would no longer specify aftermarket bumper reinforcements, brackets and energy absorbers. “They basically told all the adjusters that they won’t be using any more structural pieces from aftermarket,” says one shop owner on GEICO’s program who asked to remain anonymous. “That includes reinforcements, radiator supports, structural brackets and things like that.”

Esurance Insurance also sent notice, to their network provider shops that it would only use OEM bumper absorbers and bumper brackets on estimates. In a statement prepared for ABRN, Joe Laurentino, stated the following:

“At Esurance we believe competition from the aftermarket suppliers has proved valuable in maintaining stability in the pricing structure, while helping to maintain abundant parts availability. Our long held belief that certain structural components vital to the Supplemental Restraint System warrant replacement with OE parts was reinforced by the demonstrations of Mr. Toby Chess. Our decision to expand our policy to include the brackets and absorbers was influenced by that same demonstration. Esurance continues its participation and support of the [Collision Industry Conference] and all other partnerships focused on education in unison to better serve our customers.”

So how do you know if your A/M parts are of the same quality as the OEM? Your best bet is to first try to only have your vehicle’s structural parts replaced with OEM. For other parts, make sure they are CAPA certified (if applicable). CAPA is a non-profit organization that certifies the quality of automotive parts used for collision repairs. They certify various metal, plastic, and lighting parts. The CAPA certification process involves the manufacturing facilities being approved, individual parts submitted for testing, and are subject to random tests for continued compliance.

Some suppliers such as Keystone have parts tested by 3rd party companies and have their own quality standards, so buying from them may give you a little more assurance. Other than that, it will be hard for you to tell whether or not you’re A/M part will be of the same standard as OEM. Most of the A/M parts manufacturers are overseas, and go through a various network of distributors, so just trying to trace the part back to the original manufacturer can prove to be difficult. Lastly, you can choose to replace your damaged parts with used (LKQ) parts. Typically, insurance company guidelines state that LKQ parts will be the same year or newer than your vehicle (so your vehicle will technically be put in the same condition it was prior to the accident), and since they are original parts (just used), at least you will have the satisfaction of knowing what is being put on your vehicle.

If you do have your vehicle repaired, and you are being told CAPA parts are being used, you will see the above tag on the part.  If you don’t, you need to find out why.

To see the powerpoint presentation comparing A/M and OEM parts, click here.  Then click on the banner in the middle of the page.

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Lowering Teen Auto Insurance Premiums

Auto accidents are the leading cause of death for teens in the U.S.  Each year over 5,000 teens ages 16 to 20 die due to fatal injuries caused by auto accidents.  Further, about 400,000 drivers in the same age group will be seriously injured every year.  With that said, it isn’t really surprising that insurance premiums for teens are much higher than normal.  So what can you do to minimize teen insurance rates? Read More »

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Old vs. New Car Crash Test Results

Recently, the Insurance Institute for Highway Safety (IIHS) conducted a crash test b/t a 1959 Chevy Bel-Air and a 2009 Chevy Malibu to determine which vehicle would hold up better from the impact.  So now we can finally determine if the “they don’t build cars like they used to” theory is really true.  So what was the result? Read More »

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Allstate Fined for Unfair Business Practices

Allstate in Rhode Island was fined $5000 (NOTHING TO AN INSURANCE COMPANY) for unfair business practices, specifically for “interfering with the insured’s or claimant’s free choice of repair facility”.  To read the entire article, click here.

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Model Law Targets Airbag Fraud

A draft Model Act regarding auto airbag fraud has been adopted by the National Conference of Insurance Legislators (NCOIL) Property-Casualty Insurance Committee, paving the way for stiffer penalties to those committing auto fraud.  See the press release here.

Airbag theft has become a major problem in recent years, representing around 10% of all auto thefts, and an annual loss of around $50 million to vehicle owners and their insurance companies. They have become a hot commodity on the black market. Read More »

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Insurance Approved Rentals

You are involved in an accident and the other insurance company has accepted liability and put you in a rental.  So how long do you get to keep it for?

Well, the insurance company is not obligated to keep you in a rental for as long as the repair facility has your vehicle.  They are only obligated to pay for a comparable rental for as long as it takes to repair your vehicle PER THE ESTIMATE. Read More »

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Rescue Doctrine and Good Samaritan Laws

Suppose that you were driving your vehicle, and became distracted for a second, and as a result, your vehicle swerves and crashes into a pole.  You are pinned in and there is no way you can get out on your own.  A passer-by stops and is able to free you, but in doing so, they injury their back.

Are you responsible for their injuries? Read More »

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Insurance Agents Fined for Accepting Kickbacks

Regulators from the New York State Insurance Department (NYSID) have fined 43 brokers and agents for accepting kickbacks from auto glass repair businesses in exchange for steering customers to those particular shops.  It appears over 24 insurance agencies were involved in or accused of accepting kickbacks in the form of department or grocery store gift cards as a result of their steering practices.  Two glass repair companies were involved, and one of them, Bison Glass, actually approached the NYSID and informed them that they were discontinuing this practice because they could no longer afford to make these payments to the agents/brokers.  NYSID also obtained information from the second glass company, Pats Glass Inc., after it had went out of business (how convenient). Read More »

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Direct Repair Programs (DRP)

Getting in an accident can not only be a traumatic event, but it can result in you spending a lot of time and enduring many hassles in order to get your vehicle back on the road again.  So you may feel a bit of relief when you contact the insurance company to file the claim, and they volunteer to pick up your vehicle, take it to the repair facility, put you in a rental car, and take care of any issues related with the repair process.  With our busy schedules and demands for convenience, taking this option would seem like a no-brainer, right? It would seem so, but easier isn’t always better. Read More »

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Liability Policy Breakdown

For many people, when it comes to insurance, they simply call an insurance company, tell them they want the lowest rate possible, are given a quote, and they make a purchase.  But do you really know what you are getting?  This post will briefly breakdown the components of a basic liability policy.

A basic liability policy is broken down into three sections, the per person liability limit/per accident liability limit/property damage liability limit.  To illustrate this, lets look at the following: Read More »

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