Use of Aftermarket (Non-OEM) Crash Parts in Repair of Damaged Vehicles

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freemexy

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Use of Aftermarket (Non-OEM) Crash Parts in Repair of Damaged Vehicles
According to a 1999 study commissioned by the Alliance of American Insurers (AAI), if you were to build a $25,000 vehicle using only Original Equipment Manufacturer (OEM) parts, it would cost you over $100,000. When repairing vehicles damaged in accidents, insurance companies argue that the use of look-alike, aftermarket (non-OEM) generic crash parts significantly contributes to holding down the cost of repairs and helps keep auto insurance premiums low. Insurers claim that without a viable market allowing for the use of non-OEM parts, auto makers would have a monopoly on the replacement part industry with no checks or balances on pricing. They claim it is in the best interests of both insurance companies and their insureds to allow the use of aftermarket parts in the repair of damaged vehicles. However, as a society we must balance cost with the safety and integrity of these “generic” parts. As a result, there is an ongoing debate over the use of such non-OEM parts in repairing damaged vehicles. The laws regarding and regulations overseeing the use of non-OEM parts in repairing damaged vehicles are confusing and inconsistent. It is the goal of the article and the chart to which it links to explain the controversy and shed light on how all 50 states regulate and govern the use of such parts.car auto body parts
Crash parts, often referred to as cosmetic parts, are sheet metal or plastic parts that are installed on the exterior of a motor vehicle. Crash parts exclude mechanical parts such as batteries, filters, mufflers, shock absorbers, and engine parts (according to a 2001 U.S. General Accounting Office Report). The most commonly cited examples of aftermarket parts are fenders, hoods, doors, and bumper components. “Aftermarket parts” generally mean sheet metal or plastic parts that constitute the exterior of a motor vehicle, including inner and outer panels. A “non-original manufacturer” means a manufacturer other than the original manufacturer of the part.
The debate within the industry and the world of vehicle repairs is over the use of OEM parts vs. non-OEM or junk yard (used) parts. The practice of using parts salvaged from junk yards has received a lot of attention over the last few years. In State of West Virginia v. Liberty Mut. Ins. Co., 2012 WL 10478650 (W.Va. Cir. Ct., Dec. 2012), the West Virginia Attorney General sued Liberty Mutual because it was requiring the use of salvaged crash parts when negotiating the repairs of motor vehicles without the written consent of the vehicle owners. The trial court ordered Boston insurance company Liberty Mutual to stop using parts salvaged from junkyards to fix newer cars. The court found that these actions were in violation of West Virginia’s Automotive Crash Parts Act. Junk parts (sheet metal) often show up at the repair shop full of old bodywork done poorly, paint work needing stripping or even rust and dirt removal. Parts have to be sent back until acceptable parts can be used, which lengthens the time repairs take.
Posted 10 Jul 2019

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