The Boston Globe reports, “Auto repair shops, customers, and regulators across the country are taking aim at some insurers for insisting on using salvaged parts, or copies made by independent manufacturers, to reduce the cost of fixing vehicles damaged in accidents or storms. Using such parts can result in unsatisfactory fixes, and they may not be covered under the vehicle’s original warranties.” The Globe notes that “in December, a West Virginia court ordered Boston insurance giant Liberty Mutual to stop using parts salvaged from junkyards to fix newer cars” and “California regulators tightened their rules for using knockoff parts last month.” Moreover, “Massachusetts repair shops are considering lobbying state regulators to require insurers to pay for new parts for vehicles that are still under warranty, or with less than 36,000 miles: Current regulations require companies to use new, original parts on cars with less than 20,000 miles.”
From the American Association for Justice news release.
