Auto Collision – Insurance Companies Will Fix Your Car With Used Parts!

If you are in an auto collision, forget who is at fault for a minute. The insurance company will try to fix your car with used parts. They will not try, I was too kind. They will fix your car with used parts! How can this be legal? I believe this is highly unfair, but yet it is perfectly legal. Insurance companies around America are cutting cost and fixing cars with cheaper parts. Forget the original manufactured parts; you get some nice Taiwanese parts. What happen if there are none available? You will get a nice recycled part form a junk yard!

In other, words, your BMW will not get original BMW parts; it will get something of less quality. Adjusters will argue that this used part, second hand parts, re manufactured parts, Original Equipment Manufacturer (OEM), or/and after market parts are as good, if not better than the original ones. I believe this is a questionable claim.

I hate to report this is very “normal” for all insurance companies. Your carrier and the carrier of the person that hit you will do the same thing. They will price out the cheapest parts to fix your car. It gets worse. The insurance carrier will also make sure that you do not go to the dealership for the repairs. You have to go to a body shop that has a “reasonable and necessary” labor rate. Insurance companies argue that the dealership hourly rate is much higher the average body shop in your area and therefore it is unreasonable. They only owe for reasonable expenses, so you will be holding the bag. It does not matter that you have auto collision coverage and full coverage. The insurance company will fight you over this.

How can they get away with this? Insurance companies are very good litigators and lobbyist. The theory is that insurance companies owe you to “put you back in the position you were before the accident.”
They argue that at the time of the accident you had a “used vehicle” (unless you just drove off the lot). Since your car is used, then your parts are used. Therefore, they will pay only for used parts. If no used parts are available, then they will “allow” for new parts, but only OEM parts (manufactured in countries outside the US).

So what are your remedies? How can you protect yourself? This is one is a hard to fight because most attorneys will not get involved with any auto collisions that does not involve some sort of bodily injury. So you are going to have to fight by yourself. You can do one of two things. You could pay for the difference between the second hand parts that the insurance company wants to buy and the original parts that you need. You also would have to pay for the difference between the labor rates.

You can also ask for a letter of guarantee directly from the insurance company. A letter of guarantee is a document where the insurance company agrees to fix your car in the event that you have any problems with the parts and/or the workmanship of the body shop. The damages must be directly related to the auto collision in question. Insurance companies will try to look on the other direction when you ask for this letter. They will tell you to ask the body shop directly. Do not let them do that. You want assurances form the insurance company. They are the ones that are telling you that these parts are as good as new. If you ask and you are firm, you could get them to give you written warranties.

The Driver’s Guide to Auto Repair Shop Shenanigans

People enjoy taking their vehicles to the auto repair shop as much as they enjoy visiting their dentists. That is, they dread doing so. Not only is it inconvenient, but the repair bill is a mystery to most drivers because they’re uncertain regarding what needs to be fixed. Worse, few people can tell whether the mechanics are giving them a fair deal.

Unfortunately, when parts start failing due to wear or other factors, they need to be replaced. Likewise, when various systems (e.g. brakes, exhaust, fuel, etc.) begin to show signs of trouble, they need to be inspected. The problem is, many garages are less than trustworthy. We’ll explore some of the shenanigans pulled by repair garages below. The following may encourage you to buy auto parts online and learn to install them yourself.

Why Labor Is So Expensive

It’s rarely the cost of the parts that sends the bill through the roof. It’s the labor. Mechanics will normally charge between $50 and $80 per hour (and more for specialty cars). The reason for the high hourly rate is due to the cost of maintaining the facility, tools, and paying wages, taxes, and insurance.

That said, a lot of garages will over-bill on the labor, knowing the customer will never know the difference. For example, if you need your alternator replaced, do you know how long the job should require to perform? Most people don’t. So, the repair shop will bill the customer for two or three hours even if the job takes an hour and a half.

Paying The Flat Rate

A lot of people are unaware that repair shops use manuals that are provided by the automakers to determine how long each job will take. Initially, you might think that works in your favor. It’s difficult to justify a bill based on four hours of labor when the manual lists the job at two hours. However, it can just as easily work in the garage’s favor.

For example, suppose your catalytic converter is failing, so you drive your vehicle to your local mechanic. The manual for your make and model lists the job at two hours. Further suppose the technician is able to replace the catalytic converter in one hour. Even though it’s arguably unfair, you’ll still be charged for two hours of labor. The extra billable time is pure profit for the shop.

When The Work Isn’t Performed

This problem is especially challenging because most people lack the skills or knowledge to know whether a particular task has been performed. For example, if you instruct your mechanic to swap out your failing fuel pump with a new OEM replacement, will you know whether the pump is new? Or, could your auto technician put in a badly-designed rebuilt without your knowledge? In most vehicles, this component is installed within the gas tank, so it’s difficult to visually inspect the work.

This is an area in which trust plays a critical role. You should be able to take your vehicle to a mechanic who is experienced and willing to treat you fairly. Of course, the best time to begin looking for an honest repair shop is before your car breaks down.

Learning To Fix Your Car On Your Own

Most people are unwilling to lift the hood of their vehicle and get their hands dirty replacing or cleaning parts. Instead, they rely on their local mechanic. The irony is that a little automotive knowledge and a few tools is enough to replace hoses, plugs, and simple components without the help of a technician. It’s also far less expensive.

Here’s the takeaway: if you intend to continue having mechanics perform all of the maintenance and repair work on your vehicle, find someone you can trust. In the meantime, consider buying your auto parts online and learning how to install them on your own.