Auto rates for my company, in my state, have gone down 24% over the last six years. Maybe you haven’t noticed Geico buying the business for the last five years? That action has driven down auto insurance rates in my city. You can’t bellyache about the cost of auto insurance AND the use of replacement parts in the same sentence without revealing yourself as an attorney.
Who else complains about a system that has served the public well for hundreds of years? Per the contract.
quote
The Plaintiffs presented sufficient evidence for a reasonable juror to conclude that aftermarket parts are not of like kind and quality to OEM parts, end quote
I suppose now it is unreasonable for anyone to conclude that oem and a/m are the same, at least in Missouri. Missouri statutes require that aftermarket parts be equal to and of the same value (LKQ)like,kind, and quality as the original parts. I am not sure how Missouri insurers reconcile this statute now with contracts or policies that have been issued to Missouri policyholders wherein they state they can use these parts by virtue of contract. It seems now that those contracts may be invalid or misrepresented. Now that would be a reasonable way of looking at it from a bunch of previously unreasonable (the only ones) collision business owners that have had the courage to make this claim in the past and be slandered for making such a statement.
and if you replace the only parts available aftermarket available for that vehicle… a wavvy bumper cover and poorly stamped fender… you could shave about $200.00 off that $75K! Of course the obvious distortions in those parts would negate those BIG savings, but NAII and PCI loved to pick a vehicle every year and tout out these examples. Even Bob Hurn at PCI was thought this exercise was a weak argument, but I have not seen it done for a few years.
LOL! I am not an attorney, I’ve just met dozens over the years because insurers have tried to pass off aftermarket body parts as LKQ to OEM!
As Mr. Orton alluded … just name me the one aftermarket part that is the same in quality to the OEM it attempts to reproduce. I’ve asked this question dozens of times to many folks including Jack Gillis of CAPA.. not one person has provided that part.
I find it curious that to save money, vehicle owners will opt for aftermarket body parts with the understanding the fit and finish will not approach the OEM standard… but these same parts become the same when the insurer pick them!… very interesting indeed!
Here’s an aftermarket part that will fit exactly the same as an OEM part. How about a used, undamaged fender from a 2003 chev truck? Made by chevrolet using the same tooling they would use to make the same fender today for a 2003 chev truck. One fourth the cost.
I find it curious that my states attorney general was convinced that aftermarket parts were good enough that their use and availability to the public were guaranteed. As stated previously, if they are not good enough for Missouri, so be it. Adjust the contracts, adjust the cost of insurance, and move on.
quote Adjust the contracts, adjust the cost of insurance, and move on.
end quote
By adjusting the contracts, you are implying policy holders that were required to use these parts are due a refund or damages owed for violating the contract?
Maybe my Missouri policy owes me a refund for making me pay additional endorsement waiver for use of only oem parts since they couldn’t fulfill the contract with a/m parts.
understands about as much about AM parts as do you because they have been fed the same company lines of crap you have been swallowing for years.
Perhaps he or she was sold a bill of goods that they were “the same as” OE – that folks like me are just full of it and all we want is the money. Sounds familiar? Right?
That BS is something many folks fall for – So don’t blame yourself – It happens all the time. Here’s a little secret Gill – Repairers can make WAY more money on the AM parts than OE. Yup, it’s true due to discount structures and sale prices – part for part – in some cases, I’m talking $100 more actual dollars in profit for each hood, fender or bumper cover.
Crazy that these folks would still want to do the right thing isn’t it? They should shut up and make their money the old fashioned way – right? But they don’t – instead they persist. Because the parts are not the same Gill.
By the way – the truck fender – that’s not aftermarket. That is used OE. That is also *not* what the suit is about.
The simple solution to all the aftermarket nonsense is this…
Make it a DOI and BAR regulation that a shop MUST supply any OEM part at their actual cost (NOT list price) but they are permitted to mark up any aftermarket, LKQ, remanufactured or salvage part (and yes, each of these has a different and distinct meaning – they are not all the same). Shops spur consumers to file these lawsuits because they make about 30-50% on OEM parts (assuming they’re savvy enough to have worked out a good discount with the OEM supplier) but can generally only mark up aftermarket, LKQ, remanufactured and salvage parts approximately 25%. Slash the profit motive and suddenly all these parts that our fine body shop folks like Wade, Mark and Mike Orton decry here will be just as good as OEM (if not better) and they’ll be using every non-OEM part they can get. And I speak from 25+ years in the body shop industry, I KNOW how it goes. Body shops, attorneys, insurance companies – EVERYONE is out to make a profit, no one group is any better than the next.
Also, to whomever it was that said the insurance company contractual obligation is indemnification, that’s completely false. The very PREMISE of insurance is indemnification however the CONTRACT defines what the insurance company has decided indemnification IS and as a consumer you are free to choose it or not choose it. If you choose it, you have given up all rights to complain about it. You want OEM only – then you find a company that provides it (and you pay the cost associated with it).
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I think one time I saw a calculation that it would cost 75,000 to reconstruct a 25,000 car — with all OEM parts
Auto rates for my company, in my state, have gone down 24% over the last six years. Maybe you haven’t noticed Geico buying the business for the last five years? That action has driven down auto insurance rates in my city. You can’t bellyache about the cost of auto insurance AND the use of replacement parts in the same sentence without revealing yourself as an attorney.
Who else complains about a system that has served the public well for hundreds of years? Per the contract.
quote
The Plaintiffs presented sufficient evidence for a reasonable juror to conclude that aftermarket parts are not of like kind and quality to OEM parts, end quote
I suppose now it is unreasonable for anyone to conclude that oem and a/m are the same, at least in Missouri. Missouri statutes require that aftermarket parts be equal to and of the same value (LKQ)like,kind, and quality as the original parts. I am not sure how Missouri insurers reconcile this statute now with contracts or policies that have been issued to Missouri policyholders wherein they state they can use these parts by virtue of contract. It seems now that those contracts may be invalid or misrepresented. Now that would be a reasonable way of looking at it from a bunch of previously unreasonable (the only ones) collision business owners that have had the courage to make this claim in the past and be slandered for making such a statement.
and if you replace the only parts available aftermarket available for that vehicle… a wavvy bumper cover and poorly stamped fender… you could shave about $200.00 off that $75K! Of course the obvious distortions in those parts would negate those BIG savings, but NAII and PCI loved to pick a vehicle every year and tout out these examples. Even Bob Hurn at PCI was thought this exercise was a weak argument, but I have not seen it done for a few years.
LOL! I am not an attorney, I’ve just met dozens over the years because insurers have tried to pass off aftermarket body parts as LKQ to OEM!
As Mr. Orton alluded … just name me the one aftermarket part that is the same in quality to the OEM it attempts to reproduce. I’ve asked this question dozens of times to many folks including Jack Gillis of CAPA.. not one person has provided that part.
I find it curious that to save money, vehicle owners will opt for aftermarket body parts with the understanding the fit and finish will not approach the OEM standard… but these same parts become the same when the insurer pick them!… very interesting indeed!
Here’s an aftermarket part that will fit exactly the same as an OEM part. How about a used, undamaged fender from a 2003 chev truck? Made by chevrolet using the same tooling they would use to make the same fender today for a 2003 chev truck. One fourth the cost.
I find it curious that my states attorney general was convinced that aftermarket parts were good enough that their use and availability to the public were guaranteed. As stated previously, if they are not good enough for Missouri, so be it. Adjust the contracts, adjust the cost of insurance, and move on.
quote Adjust the contracts, adjust the cost of insurance, and move on.
end quote
By adjusting the contracts, you are implying policy holders that were required to use these parts are due a refund or damages owed for violating the contract?
Maybe my Missouri policy owes me a refund for making me pay additional endorsement waiver for use of only oem parts since they couldn’t fulfill the contract with a/m parts.
understands about as much about AM parts as do you because they have been fed the same company lines of crap you have been swallowing for years.
Perhaps he or she was sold a bill of goods that they were “the same as” OE – that folks like me are just full of it and all we want is the money. Sounds familiar? Right?
That BS is something many folks fall for – So don’t blame yourself – It happens all the time. Here’s a little secret Gill – Repairers can make WAY more money on the AM parts than OE. Yup, it’s true due to discount structures and sale prices – part for part – in some cases, I’m talking $100 more actual dollars in profit for each hood, fender or bumper cover.
Crazy that these folks would still want to do the right thing isn’t it? They should shut up and make their money the old fashioned way – right? But they don’t – instead they persist. Because the parts are not the same Gill.
By the way – the truck fender – that’s not aftermarket. That is used OE. That is also *not* what the suit is about.
The simple solution to all the aftermarket nonsense is this…
Make it a DOI and BAR regulation that a shop MUST supply any OEM part at their actual cost (NOT list price) but they are permitted to mark up any aftermarket, LKQ, remanufactured or salvage part (and yes, each of these has a different and distinct meaning – they are not all the same). Shops spur consumers to file these lawsuits because they make about 30-50% on OEM parts (assuming they’re savvy enough to have worked out a good discount with the OEM supplier) but can generally only mark up aftermarket, LKQ, remanufactured and salvage parts approximately 25%. Slash the profit motive and suddenly all these parts that our fine body shop folks like Wade, Mark and Mike Orton decry here will be just as good as OEM (if not better) and they’ll be using every non-OEM part they can get. And I speak from 25+ years in the body shop industry, I KNOW how it goes. Body shops, attorneys, insurance companies – EVERYONE is out to make a profit, no one group is any better than the next.
Also, to whomever it was that said the insurance company contractual obligation is indemnification, that’s completely false. The very PREMISE of insurance is indemnification however the CONTRACT defines what the insurance company has decided indemnification IS and as a consumer you are free to choose it or not choose it. If you choose it, you have given up all rights to complain about it. You want OEM only – then you find a company that provides it (and you pay the cost associated with it).