If enacted as is, this is a horrible bill. As indicated by PCI, it will only raise insurance rates for RI residents as carriers will pass along the extra expense to their insureds via rate increases.
Logically, the bill makes no sense either — 4 years without a mileage requirement? If my 2015 has 80,000 miles on it, I can still get an OEM parts put on it? That’s absurd.
Hold onto your wallet RI. Sadly this is typical of our legislature. RI consistently makes the top 10 list of highest auto insurance rates, and as well as consistently being ranked as one of the worst business environments, and places to work and retire from a tax perspective. What a shame it is such a beautiful state. Like CT, those with wealth can easily vote with their pocket book and move away to “more tax and business friendly” environments.
There’s nothing wrong with a certified aftermarket part.
Automakers are in the business to build and sell new, complete, vehicles. They are not in the business of selling crash parts. They sub out crash parts to secondary manufacturers and don’t spend time certifying their replacement parts.
As an old claims guy from early 90’s I saw the crappy aftermarket parts. Then CAPA came about and started to visit the plants and certify the AM parts. Their standards meet or exceed OEM.
Reputable insurance companies only specify CAPA certified parts, which are stamped and traceable.
**Body Shop to Insurance Statement – “Customer gets OEM new parts because the manufacturers require them for fit & finish quality, as well as safety. And now that it may be law, you need to pay up to have these parts applied”
**Insurance Carrier to Body Shop Reply – “Even though the aftermarket industry has a rigorous certification process that meets or exceeds OEM standards, and that it provides competition to keep pricing of parts at a more reasonable and affordable price for the consumer, we’ll apply the OEM new parts as per the law. Keep in mind that as a result of rising costs, the customer’s premium may rise as well thanks to this one sided piece of legislation.”
**Body Shop Manager to Insurance Carrier – “How you charge for premiums is not our concern. Raising premiums was never really a concern of ours, but applying OEM parts to the vehicle is.”
**Body Shop Manager to Shop Parts Counter – “Hey Chuck! XYZ Insurance just paid for OEM parts on this car. Go down to the aftermarket parts store and buy those parts for less money. The customer will be none the wiser, and we’ll make even more money! HA HA!”
THIS IS WHAT THE ACTUAL RESULT OF PASSING THIS LEGISLATION WILL BE. THE SHOPS WILL MAKE EVEN MORE MONEY, FOOLING THE CONSUMER THAT THEY ARE GETTING OEM PARTS, AND HOPING THAT NO ONE NOTICES. THIS IS TYPICAL IN RHODE ISLAND.
My understanding is that this would also apply to property damage claims as well, so it would affect Coll, Comp, and PD lines. The industry would be paying for OEM on first and third party losses, so consider that in your rate impact. More total losses as the much higher repair estimates will push more cars over the edge. Policyholders affected by the recently higher interest rates on car loans. OEM required for non-sheet metal parts like radiators, batteries, etc. Fraud and the opportunity to charge for OEM and use A/M is beyond obvious. It will be a field day. Who wins, repairers. Who loses, every RI rate payer. The repair industry “connection” to the RI legislature is quite something.
Should we be more concerned about money or passenger safety? Some insurance companies already offer OEM riders that are very reasonable. $40-$60 per year. Wonder how often they are offered?
Aftermarket parts are hardly equivalent to OEM. They make them by reverse engineering an OEM part. Poorly I might add. How about crash testing the parts the way the OEM has to? CAPA claims to test some of them, not crash test them. When an OEM has a product defect, they have to provide a recall. There are lists upon lists every month of CAPA parts being De Certified. Think even one consumer that has them on their car as part of a collision repair has ever been notified to return and have the part replaced?
As far as crooks in the industry. They are in every industry. Every last one of them should be prosecuted to the fullest extent of the law.
The only reason aftermarket crach parts came into existence was to save money. And the largest beneficiary…….? certainly not the consumer.
If enacted as is, this is a horrible bill. As indicated by PCI, it will only raise insurance rates for RI residents as carriers will pass along the extra expense to their insureds via rate increases.
Logically, the bill makes no sense either — 4 years without a mileage requirement? If my 2015 has 80,000 miles on it, I can still get an OEM parts put on it? That’s absurd.
Hold onto your wallet RI. Sadly this is typical of our legislature. RI consistently makes the top 10 list of highest auto insurance rates, and as well as consistently being ranked as one of the worst business environments, and places to work and retire from a tax perspective. What a shame it is such a beautiful state. Like CT, those with wealth can easily vote with their pocket book and move away to “more tax and business friendly” environments.
Got to give ABARI “credit” here (credit is in sarcastic quotes) … they just don’t give up!!
There’s nothing wrong with a certified aftermarket part.
Automakers are in the business to build and sell new, complete, vehicles. They are not in the business of selling crash parts. They sub out crash parts to secondary manufacturers and don’t spend time certifying their replacement parts.
As an old claims guy from early 90’s I saw the crappy aftermarket parts. Then CAPA came about and started to visit the plants and certify the AM parts. Their standards meet or exceed OEM.
Reputable insurance companies only specify CAPA certified parts, which are stamped and traceable.
**Body Shop to Insurance Statement – “Customer gets OEM new parts because the manufacturers require them for fit & finish quality, as well as safety. And now that it may be law, you need to pay up to have these parts applied”
**Insurance Carrier to Body Shop Reply – “Even though the aftermarket industry has a rigorous certification process that meets or exceeds OEM standards, and that it provides competition to keep pricing of parts at a more reasonable and affordable price for the consumer, we’ll apply the OEM new parts as per the law. Keep in mind that as a result of rising costs, the customer’s premium may rise as well thanks to this one sided piece of legislation.”
**Body Shop Manager to Insurance Carrier – “How you charge for premiums is not our concern. Raising premiums was never really a concern of ours, but applying OEM parts to the vehicle is.”
**Body Shop Manager to Shop Parts Counter – “Hey Chuck! XYZ Insurance just paid for OEM parts on this car. Go down to the aftermarket parts store and buy those parts for less money. The customer will be none the wiser, and we’ll make even more money! HA HA!”
THIS IS WHAT THE ACTUAL RESULT OF PASSING THIS LEGISLATION WILL BE. THE SHOPS WILL MAKE EVEN MORE MONEY, FOOLING THE CONSUMER THAT THEY ARE GETTING OEM PARTS, AND HOPING THAT NO ONE NOTICES. THIS IS TYPICAL IN RHODE ISLAND.
My understanding is that this would also apply to property damage claims as well, so it would affect Coll, Comp, and PD lines. The industry would be paying for OEM on first and third party losses, so consider that in your rate impact. More total losses as the much higher repair estimates will push more cars over the edge. Policyholders affected by the recently higher interest rates on car loans. OEM required for non-sheet metal parts like radiators, batteries, etc. Fraud and the opportunity to charge for OEM and use A/M is beyond obvious. It will be a field day. Who wins, repairers. Who loses, every RI rate payer. The repair industry “connection” to the RI legislature is quite something.
Should we be more concerned about money or passenger safety? Some insurance companies already offer OEM riders that are very reasonable. $40-$60 per year. Wonder how often they are offered?
Aftermarket parts are hardly equivalent to OEM. They make them by reverse engineering an OEM part. Poorly I might add. How about crash testing the parts the way the OEM has to? CAPA claims to test some of them, not crash test them. When an OEM has a product defect, they have to provide a recall. There are lists upon lists every month of CAPA parts being De Certified. Think even one consumer that has them on their car as part of a collision repair has ever been notified to return and have the part replaced?
As far as crooks in the industry. They are in every industry. Every last one of them should be prosecuted to the fullest extent of the law.
The only reason aftermarket crach parts came into existence was to save money. And the largest beneficiary…….? certainly not the consumer.
Safety First.