Aftermarket parts approved for collision repair (January 01, 2006)

At a recent meeting of the National Conference of Insurance Legislators (NCOIL), the Property Casualty Insurers Association of America (PCI) adopted a resolution on aftermarket parts and renewed a model law on credit scoring on the premise that these actions will strike a practical balance between consumer protection, competition and sound underwriting principles.

The resolution promotes the use of aftermarket parts in collision repair but only if the parts are certified by an independent third party. This action creates a presumption that certified parts are equal to car company parts in kind and quality.

The Property and Casualty Insurance Committee says this resolution, once enacted, will maintain competition as well as contribute to maintaining an affordable price tag for repair costs for consumers and thus protects them from monopolistic pricing.

NCOIL’s resolution states that the use of third-party-approved aftermarket parts fosters a competitive environment that leads to lower repair costs and fewer totaled vehicles and thus this will benefit consumers, collision repair facilities and insurers.