Insurers back off aftermarket structural parts - GEICO, Esurance cite safety demonstrations at CIC, stop specifying certain aftermarket parts - ABRN (Automotive Body Repair News)

Insurers back off aftermarket structural partsGEICO, Esurance cite safety demonstrations at CIC, stop specifying certain aftermarket parts

Source: Automotive Body Repair News

In the wake of two demonstrations showing that certain aftermarket replacement parts, including bumper reinforcements and brackets, may pose a safety risk if used in collision repair, two major insurers have announced they will no longer specify those parts in their estimates.

At the end of January, GEICO sent a notice to its adjusters that it would no longer specify aftermarket bumper reinforcements, brackets and energy absorbers. The company also modified its claims management software so that estimates would be automatically flagged if adjusters selected any of these parts.

"They basically told all the adjusters that won't be using any more structural pieces from the aftermarket," says one shop owner on GEICO's program who asked to remain anonymous. "That includes reinforcements, radiator supports, structural brackets and things like that."

Although GEICO indicated it would continue to support the use of aftermarket parts, the company planned to gather additional information on those specific parts before they could be used again in estimates.

Shortly after the GEICO announcement, Esurance Insurance Services informed its network shops that it would only specify OEM bumper absorbers and bumper brackets in its estimates. According to the company, its previous OEM-only policy applied to bumper reinforcements and core supports.

Joe Laurentino, Esurance's material damage director, provided a prepared statement to ABRN on the policy change:

"At Esurance we believe competition from the aftermarket suppliers has proved valuable in maintaining stability in the pricing structure, while helping to maintain abundant parts availability," Laurentino says. "Our long held belief that certain structural components vital to the Supplemental Restraint System warrant replacement with OE parts was reinforced by the demonstrations of Mr. Toby Chess. Our decision to expand our policy to include the brackets and absorbers was influenced by that same demonstration. Esurance continues its participation and support of the [Collision Industry Conference] and all other partnerships focused on education in unison to better serve our customers."

Insurers have increased the use of aftermarket parts in estimates over the past several years in an effort to reduce the rapidly increasing cost of vehicle repairs.

Geico and Esurance cited recent demonstrations at NACE in Las Vegas and at the Collision Industry Conference (CIC) and Society of Collision Repair Specialists meetings in Palm Springs in January in their decision. In those presentations, I-CAR trainer Toby Chess outlined how certain aftermarket parts were made of lower quality steels and other materials that could compromise their effectiveness in the crash. He also dramatically cut through an aftermarket bumper reinforcement beam for a Toyota Corolla using an extrication saw.

"It is encouraging that this is an issue that so many facets of the industry can get behind," said Aaron Schulenburg, executive director of the Society of Collision Repair Specialists (SCRS). The SCRS has been spearheading the effort to inform repairers and suppliers about the problem. "There is nothing more important than making sure we can provide a safe and quality repair for the consumer. We are pleased to see that so many other groups in the industry are giving their attention to this issue."

Industry takes notice

Chess' demonstrations have created ripples throughout the industry. After the Palm Springs event, aftermarket parts distributor LKQ pulled the Toyota bumper reinforcement from its inventory, and planned to perform testing on additional parts. LKQ subsidiary Keystone Automotive then announced it would only sell aftermarket bumper reinforcement bars that qualified under its quality assurance programs, or that were approved through third-party testing.

Later in January, the Auto Body Parts Association (ABPA) notified its membership that they should review the material and testing their suppliers used in parts manufacture, and ensure that the parts met OEM standards. The Taiwan Auto Body Parts Association (TABPA) followed suit, and advised members to stop selling and manufacturing non-certified structural parts.

And in February, the Collision Repair Association of California issued a letter to Insurance Commissioner Steve Poizner asking that insurers be required to review claims where aftermarket bumper supports were used. See links to those stories at the end of this article.

Schulenburg cautions that despite the buzz around aftermarket parts certification, the industry is rife with internal, proprietary standards that can vary from company to company, and up to this point, there has been no industry standard testing or certification mechanism specifically for structural parts. Manufacturer Diamond Standard, however, has announced a third-party certification program, and earlier this month the Certified Auto Parts Association (CAPA) said it had developed new standards for rigid steel bumpers and bumper reinforcement parts after two years of testing.

"Going forward, we're concerned that although everyone is talking about testing and certification, these parts have to be held to a publicly known and accepted standard that meets the OEM standard, and I'm not sure there is anything in place right now that accomplishes that," Schulenburg says.

Further complicating the issue is that while automotive manufacturers have procedures in place to facilitate recalls in the event that a part is found to be defective, no such mechanism exists in the aftermarket. Many of the parts involved in Chess' presentation were manufactured overseas by a variety of companies, and changed hands multiple times before arriving in U.S. distributors' warehouses. Not only would it be difficult to trace the origin of the parts, there is no way to determine which vehicles those parts have been installed on.

"It is great that the industry is looking at solutions to keep non-quality products from reaching the marketplace, but what seems to be overlooked is that these parts are already on some customer's cars," Schulenburg says. "Hopefully the attention that this issue has garnered over the last several weeks, has clearly made all sectors of our industry, and associated industries who are involved in the process, aware that repairers cannot accept anything that will be counter-productive to the most safe and proper repair. Hopefully, what will come of this, are solutions that ensure the consumer will receive nothing shy than absolute safety and quality post-repair."

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Comments from our Readers
 Posted 2010-02-17 09:07:10.0
Well, I think it is about time that the insurane companys started to wake up and relize that the after market part are not that good and can not take a hit like factory part.
 Posted 2010-02-19 09:28:07.0
This is the first tangible result I have seen come out of CIC. My hat is off to Toby Chess for his efforts.
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