I saw this story on CNN about the use of alternate parts on vehicle repairs done after a car accident. Check out the story by clicking this link: http://www.cnn.com/2015/02/19/politics/car-insurance-scam-justice-department/index.html.
My interpretation of this story is that big insurance companies are forcing body repair shops to do shoddy repairs and use non-original parts (OEM) when repairing the vehicle. Ok, I know people have their opinions about insurance companies and I won’t try to change them. We’ll see if the Department of Justice decides to proceed with this investigation as requested by Senator Richard Blumenthal of Connecticut. I felt this story was sensationalized and completely one-sided against the insurance companies.
This was a good story and the issue is important. However, my biggest problem with this story was that the body shops appeared to be the victims of bullying by major auto insurance companies. Auto Insurance companies do not repair vehicles, they pay for the repairs. If the body shop feels that they are being withheld funds for the parts and labor required for the vehicle to be repaired safely, why wouldn’t the body shop alert the owner of the car before they complete the work?
In the example illustrated in this story by CNN, a shop did inadequate repairs for a person’s vehicle that was in a car accident, and when they were called out on it, the shop blamed the insurance company for making the shop use alternate parts. I feel the shop has the responsibility to notify the customer if they feel that they cannot safely repair the vehicle with parts and procedures that the insurance company is offering.
When I get my vehicle fixed through my collision or comprehensive coverage with my own insurance company, then if my insurance policy states that like, kind and quality (LKQ) parts can be used, then my insurance company will ask the shop I chose to do the repairs, to look for those kinds of parts first. However, many times the alternate parts are too far out of the area, or when they try to attach the part, it doesn’t fit and the shop has to use an OEM part anyway. Do major insurance companies force alternate parts on their customers? Well see what the investigation and the pending lawsuits find out on that issue. I know I never forced certain parts on customers, and my company hasn’t done that to my knowledge either. There are anti-steering laws in almost every state that prevent an insurance company forcing a customer to use a certain shop for repairs. Also, the body shops and the insurance companies do not usually collude with each other. In my experience, they usually are at odds with each other because the body shop may want to charge whatever they want for the repairs, and the insurance companies argue with the shop that they are only paying for fair and reasonable repair charges.
My insurance policy is a contract with my insurance company. So I agreed to the alternative parts clause when I signed up for the policy. However, if I feel that the insurance company isn’t allowing the body shop to safely repair my vehicle, then I will contact my insurance company, complain, and a lot of times I will prevail because insurance companies usually make the right decision when it comes to safety issues. I had this happen to me before, and the shop said something to me, so I called and complained to my insurance adjuster and they corrected the issue immediately. Remember, you can change insurance companies pretty quickly now, and all of the insurance companies are aware of this fact. So hopefully, your insurance company will fight to retain your business.
If my vehicle was hit by someone else, and I go through his insurance company, then I don’t have a contract with his insurance company. So I can ask for OEM parts, however if I have an older car, that insurance company may say that they don’t owe it. Usually the insurance companies only use used, LKQ or aftermarket parts on cosmetic parts of the car only, not the parts that protect you in a car accident. They realize the ramifications of potential liability issues if they use these kinds of parts on the protective features of your vehicle if an accident happens, and they usually do not mess around, both when it is your insurance company or the other guy’s insurance company fitting the bill.
The average consumer doesn’t have access to the repair manual for their own vehicle. So how do you know if you are getting the correct repairs done or not? First, demand to see a copy of the estimate before you let the repairs begin. The shop has to have your authorization to fix your vehicle before they can start repairs. On the estimate, you may see “OEM” or “Remanufactured,” or “Alternate Part next to the parts listed on the estimate. However sometimes the estimate will not show the type of each part. So if it doesn’t, then ask the body shop appraiser what kind of parts they are using? If you don’t like their answer, contact the insurance adjuster and discuss your concerns with him or her. They may actually refer you to a Physical Damage Specialist because a lot of the bigger companies delegate the repair review to this person, and the adjuster doesn’t have authority over the repairs. If you don’ t know who the physical damage specialist is, then ask your insurance adjuster.
If after that, you really feel that you are not getting safe repairs to your vehicle, then you can contact the Department of Insurance in your state and let them know your concerns. They are the consumer advocate that decide if they want to investigate a particularly claim if they feel that there is wrongdoing by the insurance company. If they decide to investigate and find that the insurance company violated state insurance guidelines, then the Department of Insurance may levy a significant fine against that insurance company.
There are reasons why insurance companies have body shops look for alternative parts when it comes to repairs. One has to do with the age and mileage of the vehicle, and the rest usually have to do with money. I will tell you that I had to replace a power window kit on my car once and I priced out an OEM part vs. the aftermarket part. The OEM part was over $100 higher, even with a 15% discount that I had available to me. It did not make sense for me to use the OEM part because my vehicle was over 10 years old at the time, and the OEM part is what failed in the first place. I feel this aftermarket part works a lot better than the OEM part ever did. But that was my example and ever case is different. Sometimes the automobile manufacturer doesn’t recommend aftermarket or used parts, and that is where the shop and the insurance company have to communicate with each other because they usually have access to the manufacturer’s repair guidelines.
Remember, if the insurance company has to pay a lot in claims, they usually pass that cost onto their customers by way of rate adjustments. But I am all for safety, and I feel as a customer I will fight the good fight if I need to, for my kids sake. Also you pay a lot of money for your car, even an older car. So you want to make sure it gets back to pre-accident condition, and that you can sell it without taking a hit on the value later.
You can make sure that when you sign-up for your auto insurance policy, to ask the agent or the direct sales representative if this policy has a clause about alternative or LKQ parts. Let them know what your concerned about and they should be able to tell you if that company uses OEM or alternative parts in their collision and comprehensive coverage.
Thank you for reading this and be safe out there!
mrhelper@bestcarwreckinfo.com
bestcarwreckinfo.com
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