Insurance companies selling Aussie’s short

[Nikked]

If your car has been repaired in the last 5 years, no matter how old, it may have parts replaced buy “Parallel” a.k.a Aftermarket parts, Counterfeit if you will.

Insurance companies in the age old quest to boost profit, utilise parts of lesser quality from Asian companies. They say it reduces premiums. Older cars often use aftermarket parts, as genuine new parts are not available, with used the only other option. But now cars no older then 3 years may receive these parallel parts.

Often a repairer is the decider on using parallel parts or not but pressure from insurance companies to keep quotes low in competitive markets forces the use. It’s up to the customer to demand the use of genuine parts in their cars, you are paying for a good repair job to you car, and you demand quality.

Step back and think about the ramifications; Parts dealers loose out from the sales of parallel parts as they are cheaper, so the dealer mark up is less. Not only that, but car manufacturers use parts as a source of income, so they are loosing out. That is harsh considering it affects Aussie workers, its money going overseas, and the manufacturers loose out in these tough times.

Be mindful of this next time you need a car repaired.


P.S. this is regarding smash repairs.

[Rob's 76 Effy]

If the parts aren't sub standard who care's where they come from, if i can get a part O/S of the same quality and cheaper why would i be stupid enough to buy local and be ripped in the process, we now live in a global market not just a local one

[Peuty]

Originally Posted by Explorer_Me

why would i be stupid enough to buy local and be ripped in the process

Because the insurance company is footing the bill?

Are you daft?

[Dave_au]

It does go both ways though, sometimes the markup on OEM parts are quite ridiculous, especially if the "non-genuine" parts function in the same way, or are "just as good".

I believe some magazine back in the 90s quoted up building a Hyundai Excel from Hyundai's spare parts catalog; I believe the car would turn out to be over $100,000 to build using OEM parts.

Likewise, thumbing your nose and forcing the repairer to use OEM parts is a double edged sword as you can (and I believe they do) often use 2nd hand OEM parts. Another question therefore would be is it better to have brand new non-genuine parts or second hand OEM parts?

I'd rather have a non-genuine new part rather than a resprayed panel that has lived it's life on an over-worked wreck. This is something very important to consider for Falcon owners as you may be likely to end up with ex-taxi parts.

[cycle myth]

This is all catch 22 though.

Customers (you guys included) don't like paying higher premiums for insurance.

Insurance companies will find ways of cutting costs to meet competitive pressures of customers. (i.e. no genuine parts for you).

The motor company loses parts sales and profit (how is ford going lately?)

Repairers find ways of increasing profit by cutting corners (get a receipt for this part, return it and use this part).

Customers (you guys) get the priviledge of crap sub standard parts (sometimes unsafe) that reduces the performance and value of their asset.

Geeeeeeeeeeeeeeeeeeeeeeeee - wouldn't it be good if the manufacturer did insurance

- you guys would support it right???????????????

[Bossxr8]

Gee, who would have thought insurance companies would do anything they can to save on repair costs?

Insurance companies are scum.

[ltd_on20s]

Originally Posted by Nikked

If your car has been repaired in the last 5 years, no matter how old, it may have parts replaced buy “Parallel” a.k.a Aftermarket parts, Counterfeit if you will.

Insurance companies in the age old quest to boost profit, utilise parts of lesser quality from Asian companies. They say it reduces premiums. Older cars often use aftermarket parts, as genuine new parts are not available, with used the only other option. But now cars no older then 3 years may receive these parallel parts.

Often a repairer is the decider on using parallel parts or not but pressure from insurance companies to keep quotes low in competitive markets forces the use. It’s up to the customer to demand the use of genuine parts in their cars, you are paying for a good repair job to you car, and you demand quality.

Step back and think about the ramifications; Parts dealers loose out from the sales of parallel parts as they are cheaper, so the dealer mark up is less. Not only that, but car manufacturers use parts as a source of income, so they are loosing out. That is harsh considering it affects Aussie workers, its money going overseas, and the manufacturers loose out in these tough times.

Be mindful of this next time you need a car repaired.


P.S. this is regarding smash repairs.

well of course they use aftermarket parts.

your car is not brand new anymore once it leaves the factory. eg if your car is two years old and your bumper can be replaced witha second hand one that can be made and repaired to orig specs at a 1/3rd of the price they will do it.

another example
holden astra radiator is like 300+ when stamped with "genuine holden"
holden astra radiator 200 odd without the genuine stamping

difference? none. both come from the same factory made somewhere in asia

another example im pretty sure i got told at work is the ford fiesta and proton satria use the same aircon condenser, the ford one was like 300 bucks and the proton one 150. could be wrong on the cars but a lot of cars "borrow" each others bits. why use the 300$ one when the proton one is exactly the same?? and you still get the 12 month warranty??

its not the quality of the article in question when both are the same but the quality of the workmanship in a lot of cases.

99% of panels put back on your car are either new or second hand refinished to new spec's, but the mechanicals are the ones they chop and change at no detriment to your vehicle. and from what i have seen at work(i work for sgic) mechanicals are ALWAYS changed for new items. no way will a insurance company put second hand mech components in. and if anyone has seen it done from there insurance company better take it up with the ombudsman as im sure that can't be done.

sure you can have full genuine components but back in your car but are you willing to pay 30-50% more for your premiums? if so you would be the only one in Australia

[Dragoneletra]

Originally Posted by Peuty

Because the insurance company is footing the bill?

Are you daft?

Perish the thought.......

Jc

[Dragoneletra]

My old 1991 hilux did an alternator.
Nippondenso unit(spl)
Bridge toyota in Darwin $1100
A mate at repco doing me the best price he could $550
Ashdowns: $368-NO TRADE DISCOUNT

same unit, same part number the lot.

Boy did that phone call I gave to toyota go down like rocks in a blender after I spoke to Ashdowns !

Jc

[Bobman]

It's been well documented that the use of second hand parts is common amongst insurance repairs on all those current affair shows in the last couple of years.

However with non-genuine parts, I'd be more cautious. We all know how after market tail lights can fade and just don't look right. Fitment of some non-genuine parts isn't 100% spot on either. I guess it depends on what brand of car and the age though.

But if the insurance company is footing the bill for everything, then demand the best I say.

[Nikked]

Originally Posted by Bobman

But if the insurance company is footing the bill for everything, then demand the best I say.

Exactly, this is what the thread is about. You pay heaps per month, and you have the right to demand genuine parts.

[ltd_on20s]

Originally Posted by Nikked

Exactly, this is what the thread is about. You pay heaps per month, and you have the right to demand genuine parts.

err no you dont

i'd check out you policy booklet. most will say ,

"we will choose the most suitable repair method for for the type of damage to your vehicle"

"repair your vehicle using-
-new parts/ OR
-parts consistant with the age and condition of your vehicle"

or words to that effect

SOME insurance companies will only use genuine everything, however these usually only cater for the high upmarket end of town. eg porsche/top end mercs/beemers etc

to be honest tho you dont pay much for insurance in australia. be lucky your not living in the UK. ours a cheap in comparison.

[balthazarr]

Originally Posted by Nikked

Exactly, this is what the thread is about. You pay heaps per month, and you have the right to demand genuine parts.

Check your policy... I can almost guarantee that you have no such right. My policy states that they "... will use new parts or parts consistent with the age and condition of your vehicle; will use manufacturer's approved parts if your vehicle is under warranty (but excluding extended warranty); ..."

In other words, they can pretty much use whatever parts they want once the vehicle is out of warranty. However, they also provide a lifetime guarantee on repairs, so all good as far as I'm concerned.

[mickyyyy]

I would rather have Genuine OEM parts in my car instead of aftermarket knock off stuff.

After seeing so much aftermarket gear out there and most of it isent as great as OEM and ive had issues with it 2 so i dont really trust it anymore, so i pay extra for Genuine parts.

[LTDHO]

Originally Posted by Nikked

If your car has been repaired in the last 5 years, no matter how old, it may have parts replaced buy “Parallel” a.k.a Aftermarket parts, Counterfeit if you will.

Insurance companies in the age old quest to boost profit, utilise parts of lesser quality from Asian companies. They say it reduces premiums. Older cars often use aftermarket parts, as genuine new parts are not available, with used the only other option. But now cars no older then 3 years may receive these parallel parts.

Often a repairer is the decider on using parallel parts or not but pressure from insurance companies to keep quotes low in competitive markets forces the use. It’s up to the customer to demand the use of genuine parts in their cars, you are paying for a good repair job to you car, and you demand quality.

Step back and think about the ramifications; Parts dealers loose out from the sales of parallel parts as they are cheaper, so the dealer mark up is less. Not only that, but car manufacturers use parts as a source of income, so they are loosing out. That is harsh considering it affects Aussie workers, its money going overseas, and the manufacturers loose out in these tough times.

Be mindful of this next time you need a car repaired.

I used some non genuine parts in the past. More often than not they are as good as if not better than genuine and cheaper. It’s the ‘mark up’ that the brand have on their products.

Originally Posted by Nikked

P.S. this is regarding smash repairs.

So it is the insurer or the repairer. Technically, if your car is over two years old, you will get 2nd hand parts of same age, so you will be in the same position as you were prior to the accident.

Originally Posted by Dave_au

It does go both ways though, sometimes the markup on OEM parts are quite ridiculous, especially if the "non-genuine" parts function in the same way, or are "just as good".

I believe some magazine back in the 90s quoted up building a Hyundai Excel from Hyundai's spare parts catalog; I believe the car would turn out to be over $100,000 to build using OEM parts.

Likewise, thumbing your nose and forcing the repairer to use OEM parts is a double edged sword as you can (and I believe they do) often use 2nd hand OEM parts. Another question therefore would be is it better to have brand new non-genuine parts or second hand OEM parts?

I'd rather have a non-genuine new part rather than a resprayed panel that has lived it's life on an over-worked wreck. This is something very important to consider for Falcon owners as you may be likely to end up with ex-taxi parts.

Exactly.

Originally Posted by Bossxr8

Gee, who would have thought insurance companies would do anything they can to save on repair costs?

Insurance companies are scum.

So you are uninsured?
Or you are naive regarding insurance?
Or do you hypocritically still run to your insurer after your car is pinched.

[Stattic]

Originally Posted by Bobman

It's been well documented that the use of second hand parts is common amongst insurance repairs on all those current affair shows in the last couple of years.

not saying whether its true or not but its a little bit naive to use a current affair as evidence =)

[Mr Hardware]

when my parent's camry got hit from behind they replaced a taillight setup with a secondhandie (saw it had wreckers' writing on it when i changed a bulb one time) and it's in better condition than the other one which is original. I don't really mind, new aftermarket parts are better than worn out original parts!

may be likely to end up with ex-taxi parts

my car is made entirely of ex-taxi parts!

[irlewy86]

Originally Posted by Dave_au

I believe some magazine back in the 90s quoted up building a Hyundai Excel from Hyundai's spare parts catalog; I believe the car would turn out to be over $100,000 to build using OEM parts.

And I wonder how many non-OEM suppliers carry every single part for every car in all thier locations. OEM parts are expensive for a reason.

[Bossxr8]

Originally Posted by LTDHO

So you are uninsured?
Or you are naive regarding insurance?
Or do you hypocritically still run to your insurer after your car is pinched.

Yes i'm insured, its a necessary evil.

When my XR8 was stolen it took nearly 3 months to get a pay out, I was treated like a criminal and had all my phone records analysised, and my mechanic questioned. Insurance companies are scum who take your money and then when you need them they treat you like a piece of garbage. I'm paying them to provide me with insurance when something happens, not to be dragged through the mud because they want to protect profits. Then they under value your car by thousands and you have to prove to them its worth a lot more than they are offering. It was the only time i've made a claim in 10 years and I was still treated like crap.

Its funny how they gladly take your money but when they have to provide their part of the bargain they will go to the ends of the earth to avoid a payout. Its no wonder insurance companies have more complaints to consumer affairs than almost any other business.

[LTDHO]

Originally Posted by Bossxr8

Yes i'm insured, its a necessary evil.

When my XR8 was stolen it took nearly 3 months to get a pay out, I was treated like a criminal and had all my phone records analysised, and my mechanic questioned. Insurance companies are scum who take your money and then when you need them they treat you like a piece of garbage. I'm paying them to provide me with insurance when something happens, not to be dragged through the mud because they want to protect profits. Then they under value your car by thousands and you have to prove to them its worth a lot more than they are offering. It was the only time i've made a claim in 10 years and I was still treated like crap.

Its funny how they gladly take your money but when they have to provide their part of the bargain they will go to the ends of the earth to avoid a payout.

People that watch TT and ACA believe this. In fact motor claims are paid in 10 days, you have 21 days to pay your premium, so in fact they pay out quicker than they need to ba paid.

Unfortunately there are way to many people who rim of insurence companies, everyone knows someone who has. Due to this insurers have to look into every single theft as fraud. It's sad that it has to happen but you can blame those who want to make money of insurers by not being genuine. It's the honest people like us who have to go through the process because of this scum.

Originally Posted by Bossxr8

Its no wonder insurance companies have more complaints to consumer affairs than almost any other business.

Really? Whilst that may be true, you will need to understand why they do go to the Insurance Ombudsman (not consumer affairs). More often than not, it's one of two reasons. 1. They didn't read the PDS and are not getting what they assumed they did or 2. They thought their car was worth what they paid for it 10 years before.