PCI Special Report on Aftermarket Parts

In a January 2013 study from the Property Casualty Insurers of America (PCI), their own research shows that if Aftermarket parts were banned, this would result in a $24.00 overall increase in premium prices per insured car per year.

Excerpted from the report:

This PCI Special Report provides an update of the estimated cost impact resulting from the banning of aftermarket parts.

  • If non-OEM competitive replacement parts are no longer used, this may result in an additional $2.34 billion in insurance costs per year that could be passed on to drivers in the form of higher premiums.
  • The insurance premium reflecting vehicle damage coverages may increase by about 4.2 percent more per insured car. This translates into a 2.6 percent increase in the combined liability and physical damage premium per insured car if non-OEM parts could no longer be used. On average, this means about $24 added to the overall premium per insured car each year.

Is the friction, the argument and the concern over using aftermarket parts really worth $24.00 per year per insured vehicle?

Read the full PCI Special Report (PDF download)

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