Jan. 11, 2012—The Automotive Recyclers Association release_notesd a statement that calls on collision repair stakeholders to see the value in all repair parts options.
The ARA explained in a statement that it encourages adoption of unbiased pay structures to remedy the current system, which they say provides the largest financial rewards to shops that only use the most expensive replacement part option.
“In making this important statement, automotive recyclers are continuing their ongoing campaign to inform and empower the consumer, balance the market and protect the environment," said Michael E. Wilson, ARA CEO, adding “more and more frequently it appears that compensation levels on parts, rather than the quality of the underlying product, are dictating the parts choice outcome.”
This is important because 45 percent of an average consumer’s insurance claim covers the cost of parts, the ARA explains. As more expensive parts are used, insurance companies need to charge higher premiums, the ARA says. It also results in more total losses.
“These circumstances take on added significance in today's market where according to automotive research company, Polk, the average age of a vehicle in 2010 was 11 years old, up from 8.4 years in 1995,” according to the ARA’s statement.
