CAPA, PCI discuss aftermarket crash parts

Jan. 1, 2020
DES PLAINS, Ill. – On Nov. 20 the Certified Automotive Parts Association (CAPA) and other insurance industry participants met with the Property Casualty Insurers Association of America (PCI) to discuss the issue of preserving t

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DES PLAINS, Ill. – On Nov. 20 the Certified Automotive Parts Association (CAPA) and other insurance industry participants met with the Property Casualty Insurers Association of America (PCI) to discuss the issue of preserving the availability of affordable competitive crash parts. PCI also met with the Quality Parts Coalition (QPC) on this issue last week, and previously talked with the U.S. Patent and Trademark Office as well.

A PCI analysis finds that competitive crash parts save approximately $2.8 billion in insurance costs per year that consumers would pay if these parts were not available. PCI says automakers recently attempted to use the U.S. patent system to prevent competitive parts manufacturers from competing with them for repairs involving replacement parts such as bumpers, fenders, hoods, and door panels.

If successful, automakers could gain an effective monopoly, with the effect of raising costs and insurance premiums for consumers. PCI’s analysis shows that OE parts typically cost about 60 percent more than competitive parts. As a result, a six-percent increase in loss costs for vehicle repairs could be expected per insured vehicle, for an overall auto insurance premium increase of about 3.5 percent more per insured vehicle.

This analysis only includes insured losses, and does not quantify the impact on those consumers who do not carry comprehensive or collision coverage and must pay for repairs themselves. Therefore, the full impact on consumers would be far greater.

PCI supported House Resolution 5638, a bill introduced this year in the U.S. House, which would have protected competitive crash parts. PCI says it would support new legislation, if introduced in the 111th Congress, toward that goal.

For additional information visit www.pciaa.net.

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