ALLIANCE STUDY FINDS EXTRA COSTS

Rebuilding an automobile from the ground up using car company crash parts costs more than four times the car’s original retail price, according to a study commissioned by the Alliance of American Insurers. Even without the cost of paint and labor, a 2001 Chevrolet Cavalier LS four-door sedan totaled out and rebuilt entirely from car company parts cost $63,240.14, compared with the car’s original retail price of $15,395. The cost of rebuilding a vehicle with car company parts generally triples the car’s original cost, although for the last two out of three years the car rebuilt with car company parts cost four times retail. According to Kirk Hansen, Alliance director of claims, the cost of repairing damaged automobiles accounts for between 40 and 50 percent of the insurance premium for most auto insurance consumers. He added the cost of crash parts has a major, direct impact on the price consumers pay for auto insurance. To help hold down the cost of vehicle repairs while assuring quality, the Alliance and its member companies support the sale of competitive replacement parts approved by the Certified Automotive Parts Association, which tests auto parts produced by independent manufacturers.

Topics Auto