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CDI Asked by CAPA to Reinstate Language On Certified Aftermarket Parts The California Department of Insurance in October issued the latest amendments to its proposed aftermarket parts regulations. Among the changes was the complete elimination of language pertaining to certified aftermarket parts. The result is that, as they stand now, the regulations treat all aftermarket parts the same, certified or not. In an Oct. 23 letter to Commisioner Jones, the Certified Automotive Parts Association (CAPA) called on California Insurance Commissioner Dave Jones to reconsider the elimination of the certified parts sec-
tion. CAPA Executive Director Jack Gillis said, “The Department has joined with body shops, not only to maintain the status quo, but to ignore the only effort designed to protect California consumers from both poor quality and overpriced parts.” The latest revision of the proposed regulations does not eliminate the requirement that insurers specifying the use of non-OEM crash parts must warrant those parts to be “at least equal to the original equipment manufacturer parts in terms of like kind, quality, safety, fit, and performSee Certified Aftermarket, Page 50
Sandy’s Total Economic Damage May Reach $50 Billion, 250,000 Flood-Damaged Vehicles
Toyota Develops and Announces ‘Predictive Estimating’ Tool—Called ‘Game-Changer’ by John Yoswick
Representatives of Toyota drew multiple rounds of applause at the Collision Industry Conference (CIC) in Las Vegas in November as the automaker previewed what it is referring to as a “predictive estimating” system for its vehicles. Toyota’s Jerry Raskind called the system a “game-changer” in that rather than having an estimator start from a blank page and add line items based on what they know or can locate about OEM procedures, the new system begins with a complete estimate that incorporates all necessary parts and Toyota-recommended procedures, along with links to all related Toyota bulletins and published documentation.
The system allows the user to adjust the estimate, such as changing the type of part to be used or omitting a procedure not necessary based on the actual damage to the vehicle. Repairs can be substituted for parts replacement. But Toyota believes Jerry Raskind the system will help ensure estimates are more likely to be completed based on the automakers’ prescribed procedures. “They’re more likely to include all the appropriate repair methodologies, procedures and parts, and won’t miss any of the key repair items,” Raskind said. See Predictive Estimating, Page 24
SEMA Panel Discussion Reviews InsurerBacked Parts Ordering in Other Countries by John Yoswick
A parking lot full of yellow cabs is flooded as a result of superstorm Sandy on Tuesday, Oct. 30, 2012 in Hoboken, NJ. (AP Photo/Charles Sykes)
$3 billion to its already substantial debt. Eqecat said that the damage from the storm will likely be far worse than See Sandy Damages, Page 35
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Widespread power outages and subway shutdowns, added to the tremendous physical damage to property, may make Superstorm Sandy the second most expensive storm in U.S. history, according to the forecasting firm Eqecat. That would rank it right behind Hurricane Katrina. Estimates also suggest that Hurricane Sandy will rank as the nation’s second-worst storm for claims paid out by the National Flood Insurance Program. With 115,000 new claims submitted and thousands more being filed each day, the cost could reach $7 billion at a time when the program is allowed, by law, to add only an additional
VOL. 30 ISSUE 12 DECEMBER 2012
The Society of Collision Repair Specialists (SCRS) held a variety of training sessions and panel discussions aimed at collision repairers during the SEMA show in Las Vegas in November. Among the best-attended was one entitled, Bidding Wars, in which collision industry representatives from Australia, New Zealand and Canada discussed what they have seen in their countries after an insurer mandated use of a particular David Newton-Ross electronic parts procurement system. “We’re not going to tell you what’s going to happen here in the United States,” David Newton-Ross, editor of a trade publication in Aus-
tralia, said as he opened the session. “We’re going to tell you what’s happening in other countries. What happens here is up to you.” Rex Crowther, who sold his two New Zealand shops in 2008 and is now editor and publisher of a collision repair trade magazine in that country, said PartsTrader launched there in 2005, and use of it was manRex Crowther dated initially by one large insurer. With no domestic automakers and a vehicle population that averages 13.5 years in age (compared to 11 years in the U.S.), used parts dominate the New Zealand market, accounting for between 55% and 65% of all parts used, Crowther said. Mark-up on those parts dropped from 25% to 20% See Other Countries, Page 36
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