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Can Insurance do this?

Joined
19 June 2002
Messages
318
Location
Bay Area, CA
Eventually some may heard that i have gotten rear ended some time ago. The adjuster finally looked at it, and gave the the estimate. When i looked at the sheet of what needs to be done and changed. I noticed all the parts were "Remanufactured" parts. These parts were like more than 50% less the OEM prices. Can the insurance comnpanies do that?! I don't want anything thats remanufactured, Do i have the right to request factory parts?
 
Yes. Take it to a reputable body shop with your insurance estimate. They should be able to adjust the estimate and talk to the insurance company directly to get money for the difference. I think insurance company always does that but you have every right to get it adjusted.

-ak
 
Remanufactured is NOT new, no matter how good a job it is. If there's a warranty involved, using aftermarket OEM might put you in a bind, maybe not in this case, but it has happened.

What are the sources for these parts. What I'm getting at is, should one part fail within a warranty period (if provided), is it covered by the manufacturer? The outfit that remanufactured the part? The installer? Or the parts house? Then, getting the labor covered for installing a new part in place of a defective one.

The quality of parts DOES tie in with the quality of the parts house. Ask any mechanic who owns their own shop. They have select suppliers and don't go cruising for the cheapest part because its a waste of time or unless they do so at a customer's request (rare).

Settle for nothing less then new OEM. I'm not against insurance companies or adjusters, but its why you paid your dues and your deductables. Your baby is worth it.

Sunny
 
I was in a similar situation, but the caveat from the insurance company was something along the lines of "if available", as it turned out they were unable to locate any 'remanufactured' necessary items anyway which made the negotiation easier, either way it usually just means more haggling with the adjuster in my experience.
 
As Jonathan just mentioned it is very unlikely that they can find remanufactured parts, and there are few if any aftermarket "stock replacement” parts for the NSX. What parts are damaged?

As to whether or not the "can" if available, that depends on your policy. A number of large insurers now make specific reference to the use of non-OEM parts in their policies.
 
Do i have the right to request factory parts?
[/B][/QUOTE]
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Remanufactured parts are factory parts that are reconditioned. Reconditioning can be cleaning, replacing worn items, or in the case of body parts, visual inspection for any damage.
 
Originally posted by Tobal:
Eventually some may heard that i have gotten rear ended some time ago. The adjuster finally looked at it, and gave the the estimate. When i looked at the sheet of what needs to be done and changed. I noticed all the parts were "Remanufactured" parts. These parts were like more than 50% less the OEM prices. Can the insurance comnpanies do that?! I don't want anything thats remanufactured, Do i have the right to request factory parts?



They are ABSOLUTELY not able make you do this. They can certainly try to make you accept remanufactured parts...but they are legally obligated to make you 100% whole again. This means 100% new parts and quality labor of your choice. It is possible that the shop you are working with has a hand in it too. They are known for selling remanufactured parts and invoicing the insurance company for new parts. Its a big racket. Don't take no $#!+


------------------
Todd E. Williams
'94 NSX Berlina Black/Black
 
I recently switched insurance companies given that I got a much lower rate. I drilled them on track/autocross coverage and most of all, that GENUINE replacement parts are used for ANY damage to my NSX & GSR and that I have the choice of where to get my cars repaired. All those conditions were met (called them twice and verified this with different reps and a supervisor) so I signed up and am happy with my new insurance provider.
 
Originally posted by tewills:

They are ABSOLUTELY not able make you do this. They can certainly try to make you accept remanufactured parts...but they are legally obligated to make you 100% whole again. This means 100% new parts and quality labor of your choice. It is possible that the shop you are working with has a hand in it too. They are known for selling remanufactured parts and invoicing the insurance company for new parts. Its a big racket. Don't take no $#!+



Your first two sentences seem at odds with each other. But perhaps part of the confusion is not knowing which insurance company we’re dealing with. Presumably it is the company of the other driver, in which case you may have more legal leverage but less personal leverage. As stated, they are obliged to make you “whole” but that can mean repairing and repainting without replacing anything where possible. A refurbished used part that returns the car to its prior condition would probably also qualify. If you are not satisfied with their plans then you can probably get your company to add some pressure. If that fails you may very well be able to have your company make up the difference for proper repairs against your comprehensive policy which is why they’ll try to help pressure the other company

If for some reason you are dealing only with your own insurer then they are obliged to fulfill the terms of the policy, nothing more. That typically includes making one "whole" as well but their definition may well differ from yours and they have better lawyers, so firm but diplomatic pressure is advised. In this case, as I said read your policy, but don't get all tense and upset yet regardless of the wording.

Either way, it is quite likely that they will do the logical thing and replace pieces as necessary and with new OEM parts due to availability of other options.
 
Generally speaking, for normal cars it is a common practice for insurers to get parts replaced with reconditioned and/or non-OEM parts. For them this is a business issue, as these parts are obviously less expensive, and therefore allow them to make you "whole" at a much lower cost to them (read: impact to the botton line is boosted). While the parts may not be OEM, any reputable insurance company that engages in this sort of replacement policy should also have it as policy that the parts are high-quality and that the vendor offers a warranty of sorts (if applicable) on what they provide. The practice -- while frustrating for the claimant -- is not illegal on the part of the insurance company. As sjs said in his post, it does depend on the terms and conditions of the policy that you entered into with the insurer, and most of them stipulate that they do not need to rely on making you whole by exclusively using OEM parts -- as long as there are "reasonable alternatives" available. One needs to check the fine type of the insurance policy to gauge how each company implements this policy because it does vary.

That being said, I do find that insurance companies practice this with normal every-day drivers, and not exotics like the NSX, Porsche, Ferrari, etc. I had a buddy of mine get into a no-fault accident that required about 8K of repair work on this Porsche 911. The insurance company replaced his parts with OEM parts from Porsche directly. Part of this was because they recognized that it was a Porsche (brand equity associated with being a high-end car), and partly because they realized it would be difficult to find non-OEM parts for the car.

I'm wondering if your agent, seeing the "Acura" name on the car, is discounting how high-end it is, and is lumping it in the same category as the RSX and/or the Toyota Celica's of the world. You may want to have a frank discussion with them, and express your concerns about having non-OEM parts installed in such a high-performance machine. I find that in these instances, the particular claim agent can also have a huge impact on the quality of your experience. Cross your fingers though: if you are dealing with a reputable insurer, and have a decent claim agent -- and if you speak to them about the uniqueness of your situation -- I am sure they will be reasonable about it.

Regards.
 
Eventually I am dealing with a small insurance company called Leader Insurance aka Infinity Insurance. The part i'm referring to is the Rear bumper and Valence.

Well i recieved the check today they sent me but not going to be cashing it. Already talked to my lawyer and have them get things straighten out.

But i still think its outrageous they would quote me on Reman. parts. I know that AAA, State Farm and other Big insurance companies usually quote for NEW OEM parts.
 
They are not that small of a company but that is not relevant.
Many aftermarket vendors list parts like a NSX bumper cover and valence as available as reconditioned parts.
"Reconditioned" bumpers are generally available only for vehicles with very large production numbers since a supply of repairable cores would need to be make them readily available.
These vendors list these NSX parts in their catalogs for "illustrative value" and in fact don't exist nor are they readily available, at least not in my experience.
The vendors are the ones that are supporting the notion of their existence so that the Insurance Adjusters use their database/catalog most often and hopefully increase their market share on the parts they DO have via their representation on a Insurance Appraisal.
If they are listed by a vendor, the appraiser is often required by their company to include them on his estimate.
I have raised this issue with vendors and insurance companies and shown that it does nothing but waste time just to make numbers look good.
A repair shop should have no trouble at all in resolving this to your satifaction. It really is a simple matter for any experienced professional.
The exception is one that can't resolve this.

The implication that repair shops
"are known for selling remanufactured parts and invoicing the insurance company for new parts" and that it is a "big racket" is a nasty generalization.
I don't care for such generalizations about my profession or for that matter when they are made about Lawyers, Doctors, Priests etc., or Bankers either. Such comments are inflammatory and unconstructive when someone is looking for advice.

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www.vincesautobodyworks.com

[This message has been edited by pbassjo (edited 29 January 2003).]
 
Originally posted by Tobal:
Already talked to my lawyer and have them get things straighten out.

Then you're already wasting your time, and your lawyer's time.

You don't seem to be listening to what people are telling you here:

1. It is virtually certain that no remanufactured parts are available for the NSX.

2. Your body shop will work with the insurance company to get reimbursement for the extra cost of new parts where the remanufactured parts are not available, as well as for any other differences from the insurance company's estimate. It is quite common for such differences to be identified once the body shop has the car and opens it up for the repair.

Just take your car to your body shop (hopefully, a good one that has a lot of experience with the NSX) and let them work it out with your insurance company. And chill.

No need for lawyers, no need to get aggravated over terms in their reimbursement process that no body shop can meet.

[This message has been edited by nsxtasy (edited 29 January 2003).]
 
Originally posted by pbassjo:
The implication that repair shops
"are known for selling remanufactured parts and invoicing the insurance company for new parts" and that it is a "big racket" is a nasty generalization.

Yes, it is. As with any vendor, your best bet is to find a body shop you can trust to do the work right. Ask around, get references from other customers, and find a shop that will do the job right.

Your local dealer can refer you to a local body shop that is qualified to do the repair. And guess what - it will probably be a shop that uses only new OEM parts, because they order them from that dealership!
 
Originally posted by ck:
Tell them they are about $1500 too short.

Better not. They are offering $399+$250=$649. List is $950+$354=$1304. Try telling them they are about $655 too short.
 
Originally posted by pbassjo:
They are not that small of a company but that is not relevant.
Many aftermarket vendors list parts like a NSX bumper cover and valence as available as reconditioned parts...

Well explained. Nice post.

Originally posted by nsxtasy:
Then you're already wasting your time, and your lawyer's time.

You don't seem to be listening to what people are telling you here:...


What he said.
 
Originally posted by nsxtasy:
Better not. They are offering $399+$250=$649. List is $950+$354=$1304. Try telling them they are about $655 too short.

You know what I meant.
rolleyes.gif
Plus, you have to figure in the labor units. I am assuming that the check they cut him includes labor.
 
I'm not sure I understand what you mean. They wouldn't be discounting the labor because of remanufactured parts...
confused.gif
 
I am assuming that the $399 and $250 is for parts only, not including the cost of labor. That is the amount he said he received and that would be awfully low if it is including labor. Unless, of course, they are paying for labor separately.
 
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