The Property Casualty Insurers Association of America (PCI) highlighted a variety of legislative and regulatory auto body repair issues that are likely to be addressed in 2013.
Like this article? Sign up to receive our weekly news blasts here.Bob Passmore, PCI's senior director of personal lines, conducted an educational session Oct. 10 during NACE on insurance and auto repair issues and trends. He noted that in 2012 there were fewer storm losses, and that higher unemployment and gas prices cut into total miles driven, but that there were also increasing sales of new cars, and the price of parts and labor have been steadily increasing.
He also said perennial issues of repair options, aftermarket parts, glass repair, labor rates, and appraisal and estimating practices are likely to be debated once again in 2013.
"We expect that aftermarket crash parts will be a key issue that carries over into next year," Passmore said. "Nobody wants to see subpar parts used to repair a vehicle. While it is important that the law protect consumers from unsafe parts, it is equally important that those laws do not discriminate against any one type of parts. Salvage parts and other alternatives provide consumers safe and durable repairs with lower costs. Although we do not endorse the use of any particular products or practices, we believe policymakers should not take legislative or regulatory action that favors one type of part or reduces competition and, thereby, limits consumers' options."
Passmore also said that insurers and auto body shops have a lot of common ground.
"Insurers and repairers are affected by the same market trends and forces, and serve the same customers, and have at least as much in common as there are differences," Passmore said. "Satisfying the consumer is the top priority for both insurers and body shops. A top quality repair and repair experience, delivered in a cost-effective manner is in the best interest of the customer, the shop and the insurer."
