The National Association of Mutual Insurance Companies (NAMIC) is fighting back against an appeals court case that could eliminate the sale of competitive auto repair parts. Ford v. Keystone, now pending in the U.S. Court of Appeals for the Federal Circuit, aims to eliminate sheet metal or plastic exterior body parts from the marketplace, leaving only OEM-produced body parts for use. The move, NAMIC argues, will cause repair and ultimately insurance costs to skyrocket. Delivering testimony to the U.S. Patent and Trade Office, NAMIC — joined by other property and casualty insurance trade associations — argued against pending litigation that aims to use patent laws to prohibit competitive auto repair parts. “We believe these legal proceedings could establish precedent that could virtually eliminate competitive aftermarket repair parts from the marketplace,” wrote NAMIC in the testimony. “It would eliminate a low-cost option and necessitate that all repairs utilize more expensive OEM parts. It has been estimated that competitive aftermarket parts are currently priced 34 to 83 percent lower than the comparable OEM parts.” Higher repair costs will increase the amount of damaged vehicles determined “totaled” and force more policyholders to buy new vehicles in lieu of repairs, NAMIC says. They also argue that the lack of aftermarket parts competition may cause a drop in consumer repair satisfaction, as OEMs will have complete control of parts supply and repair times. |
