Group Seeks Regulation of Knockoff Car Parts
Many insurers push “shoddy” and even dangerous knockoff replacement parts on car owners after a crash, Consumer Reports magazine found in a study issued Monday.
The study, in the magazine’s February issue, found replacement bumpers that crumpled with little resistance, poorly fitting fenders that tend to rust, and hoods with faulty latches that allow them to open at high speeds. Consumers Union, a nonprofit group that publishes the magazine, is urging Congress and the states to regulate the industry and require car owners’ consent before knockoff parts are used.
Most insurers endorse imitation parts because they can cost as much as 65% less. Yet customers complain about knockoff parts twice as often, according to a survey of 500 repair shops done for the auto industry by Industrial Marketing Research.
Daniel Della Rova grew concerned about replacement parts after the hood of his Honda Accord flew into his windshield on the highway near Kutztown, Pa., in 1998. An appraiser blamed a cheap imitation hood made in Taiwan.
The difference in price can be substantial. A knockoff replacement hood for the Accord costs about $100, compared with about $225 for a hood made by Honda.
That’s a major reason why insurers call for imitation parts 59% of the time, according to Industrial Marketing Research.
Only one major insurer out of the 10 questioned by Consumer Reports required replacement parts made by the original auto maker: Interinsurance Exchange of the Automobile Club of Southern California. The magazine said Allstate will pick up the cost for original parts if the customer insists. State Farm, Travelers and Erie require the consumer to make up the difference.
Insurers warn that requiring parts from original equipment makers could drive up the $59 billion Americans spend each year replacing parts damaged in the 35 million auto accidents that occur annually.
The insurance industry is not aware of widespread problems with replacement parts, said David Snyder, a lawyer with the American Insurance Assn. Any legislative response, he added, “should not be so wrapped up in red tape that it eliminates the consumer savings and competitive benefits of aftermarket parts.”
Consumers Union wants Congress to require the National Highway Traffic Safety Administration to require labeling that would allow authorities to track parts for recalls and to determine legal liability. It also wants states to require insurers to disclose how much they’re saving with imitation parts.
