Discussion at the Collision Industry Conference (CIC) held in Philadelphia in mid-April indicates there is little consensus in how used or recycled parts should be priced.

    The problem as an industry trying to create best practices is we have two different pricing mechanisms out there, and we’re trying to create some sort of standard that’s accepted by all,” said Ken Weiss, chairman of the CIC Parts Committee.

    Auto recyclers participating in the discussion estimated that about 20 percent of recyclers, include Greg Freeman of Freeman’s Auto Salvage Center in Joplin, Missouri, have moved to pricing parts as undamaged while 80 percent still quote an “actual part price” to which allowance for any damage must be added.

    “From the interacting I’ve been doing with our customers, the collision shops were asking for an undamaged part price, and we’re trying to get (other) recyclers to get to that level,” Freeman said.

    But Weiss pointed out that based on discussions he heard at the Automotive Recyclers Association (ARA) convention last fall, only a small minority of recyclers have made that change.

While I can load up with reasons why Governor Arnold Schwarzenegger won’t okay collision repair legislation opposed by the insurance industry, I’d prefer to focus on what it would take for him to overturn the wishes of insurers who do business in California. The short answer is “consumers.” And while I’m at it, let me add that “consumers” are the answer to stopping unfair insurer practices in collision repair settlements.

    But first we need some background. A key insurance force in Sacramento is the Personal Insurance Federation of California (PIFC) which represents such giants as State Farm, Farmers and Progressive. Dan Dunmoyer was the president and chief lobbyist for the PIFC until Governor Schwarzenegger pegged him to be one of his top advisers. Having a former PFIC executive close to the governor should raise eyebrows among those of us in collision repair. But in my humble opinion Mr. Dunmoyer gives the insurance industry only one advantage: its point of view will be heard.

Assembly Bill 594, revolutionary new legislation in Nevada, has quietly been enacted and implemented. The bill creates a Class A certification designation for body shops that meet certain criteria.

    Existing law requires body shops to submit an application to the Department of Motor Vehicles for a license to operate and file a bond in the amount of $10,000 with the Department before doing business in the State. One aspect of this bill created a Class A certification for a body shop that demonstrates compliance with certain criteria.

ASA Compliance Summary Available

The U.S. Environmental Protection Agency (EPA) will hold its 2008 Environmental Summit in Washington, D.C., later this month. The EPA’s Environmental Assistance Network (EAN) will sponsor a special session May 21 to discuss environmental assistance opportunities and needs. The session will focus on the retail sector and paints and coating area sources.

Senate Bill 1371, carried by Senator Lou Correa and sponsored by the California Autobody Association (CAA), was unanimously (11-0) supported by the members of the Senate committee on Banking, Finance, and Insurance on April 16.  There is currently no opposition to this bill.

Despite howls of protest from lobbyists representing insurers and aftermarket companies, the California Senate Judiciary Committee not only approved the CRA-sponsored SB 1059, it also added new muscle to the bill. By a 3-2 vote the committee agreed to add the following provision to the bill: “At the time of sale, the insurer shall specifically notify the insured whether the insurance contract allows for the use of aftermarket parts, and that such use may affect the insured's vehicle manufacturer's warranty.  The required use of aftermarket parts must also be clearly and conspicuously disclosed in bold type in the front declaration page of the policy."