Recycling is integral to modern
America: We can all earn a dime or two — and save a sliver of the
environment — by returning our plastics, newspapers, glass, aluminum
cans, and countless other would-be throwaways. But do recycled auto
parts have anything to do with preserving the environment? Are they
safe? Are they used just to save a buck?
Some auto insurance
companies actively encourage the use of recycled auto parts in the
repair of crashed vehicles. "Recycled" could mean reconditioned — a
junkyard part that is saved from its grave and refinished — or it could
mean just plain old salvage. In either case, the parts are acquired
from a junkyard and aren't being tested for safety before being put on
your car.
Unlike other repair parts — both
original equipment manufacturer (OEM) and non-OEM crash parts —
recycled auto parts are not tested for safety after they have been
junked. There are no official safety standards, private organizations,
or government agencies that regulate recycled parts.
| Auto parts lingo
OEM: Original Equipment Manufacturer; replacement parts that come direct from the vehicle maker's factories.
non-OEM:
Often referred to as aftermarket parts; generally made in Taiwan and
certified by the insurance industry's Certified Automotive Parts
Association (CAPA) as being safe.
Recycled: Sometimes referred to as salvage or reconditioned parts;
sometimes obtained from junkyards and can be either OEM or non-OEM
parts. |
Jeff Hill, a State Farm policyholder from Endwell, N.Y., who had his
damaged car door replaced with a "quality recycled part" from a local
auto-salvage yard, knew from the start that a recycled part was going
to be used, but later found out he didn't get what he bargained for.
"I
thought [the recycled-parts business] was a regulated industry and that
the parts would stand up to the same standards as my old door," Hill
says. But the parts didn't meet Hill's expectations. "Initially, the
repairs were unsatisfactory. The door leaked and didn't fit right."
Repairs were made a second time to fix the problems, but Hill is now
skeptical of the general quality of the parts.
"State
Farm was not up-front with me about the definition of 'quality
replacement parts,'" he asserts. The company didn't tell him that the
recycled-parts business is not safety regulated and, as he admits, he
just assumed the parts he was getting met some kind of standards. "If
people think they're getting safe parts, they're under false illusions."
The
Certified Automotive Parts Association (CAPA), a nonprofit insurance
company-sponsored organization that oversees the testing and inspection
of non-OEM replacement parts, does not certify used, reconditioned, or
recycled parts.
"I
think this is something to be concerned about," says Ann Spink, owner
of American Coachworks, an auto-repair facility in Denham Springs, La.,
and vice president of the Coalition for Collision Repair Equality, an
advocate group for auto-body repair shops. "Why is [the part] in a
salvage yard in the first place? The most likely reason is that it has
been in an accident."
Spink says that each
part of the car impacts the structural integrity of the car. "Depending
on how the energy [of the crash] traveled through the car, if it was
hit in the front, there could be damage in the back."
Shockwaves
pulse through vehicles involved in a collision. Newer cars with unibody
construction are designed to absorb the collision burst, protecting
passengers from potential harm. (In unibody construction, the vehicle
functions as a single component in a crash, distributing the crash
pulse evenly around the passenger compartment.) However, what
shockwaves do in auto accidents is what they do in earthquakes:
compromise the strength of a structure. Although damage is not obvious,
crash pulses can weaken the integrity of any auto body part.
How
do you know if a recycled part has been compromised? Damage to fenders
and bumpers is fairly obvious, but in doors, Spink says, you never
know. "It's a window regulator, a lock regulator, and it may have a
speaker in it. You have to ascertain that all of those electrical
components are functioning correctly [before you can say it's safe]."
One
potential safety threat to consumers, for example, is when a junkyard
steering column equipped with an air bag is used to replace a damaged
one. The air bag initiator — a clock spring or coil that performs like
a blasting cap, inflating the air bag — might be broken if the column
has come from a junkyard. If the initiator is broken and not replaced,
the air bag could inflate without warning. One source tells Insure.com
that car insurance
companies have indeed been known to direct the installation of junkyard
steering columns containing air bags to replace damaged ones.
Bill
Denya, owner of Denya's Auto Body in Meriden, Conn., traces the safety
concerns of junkyard parts to the long-time insurance company practice
of using non-OEM parts in repairs. "[Insurance companies] mandated the
use of aftermarket parts for years, and a lot of those cars are going
to be in salvage yards," he says. Denya's theory is that if non-OEM
parts are substandard when new, quality takes a plunge after the parts
are salvaged.
Denya insists that the
auto-repair facility should refuse junkyard parts that are a potential
safety hazard. "[The body shop's] license is in jeopardy if he uses an
unsafe salvage part. The shop should know better." Denya notes,
however, that insurance companies will mandate the use of junkyard
parts as much as they can. Denya's own shop rarely uses salvage parts
in repairs.
| Junkyard parts are "definitely depriving policyholders of what they're entitled to." |
Ina DeLong, a consumer advocate and member of the Alliance for
Insurance Reform, says that some junkyard parts are as close as you can
get to what you previously had. However, junkyard parts are "definitely
depriving policyholders of what they're entitled to," she contends.
"What the policyholder pays for [in premiums] is to be put back to
exactly where they were [before the accident]," she says. "Insurance
companies are putting [consumers] back, in some cases, in what amount
to death traps."
"Sometimes [recycled] parts aren't a real good bargain," concurs Sheila Loftus, publisher of Hammer & Dolly,
an auto-repair magazine based in Washington, D.C.. "They can delay
repairs and, depending on how they're removed and stored, there could
be safety concerns." Loftus says she would never want a used or
recycled part that affects the safety or structure of her own car.
"They're cubic zirconia for gosh sakes!" she exclaims.
State
Farm isn't the only company allowing or directing the use of recycled
parts for repairs. Farmers Insurance Group spokesperson Kitty Miller
says, "If a recycled part is the most appropriate for the repair, we
would certainly encourage the use. If you have an '85 Cavalier, the
most appropriate part for that repair might be a recycled part or a
non-OEM part because it might be the most cost-effective."
Miller
says that Farmers sees no potential safety threat in using recycled
parts for repairs. "We would never put a part on the car that we feel
would compromise the safety of the vehicle," she says.
Allstate
Insurance Co. uses recycled parts in some of its repairs, too. In fact,
Allstate, Farmers, Progressive, and State Farm all say that recycled
parts are of like-kind and quality to OEM parts. But how do insurance
companies sort out the good recycled parts from the bad?
"When
cars are sold for salvage, they are dismantled, the parts catalogued
and stored in a computerized database, and the parts are usually
physically stored in warehouses. They're not left out in junkyards,"
Miller explains. "Farmers does not use salvage parts to replace axles,
suspensions, or transmissions. Most salvage parts are external
sheet-metal parts."
"We pretty much rely on the repair shops to let us know if there is a problem with the parts they receive." |
"We pretty much rely on the repair shops to let us know if there is a
problem with the parts they receive," says State Farm spokesperson Dave
Hurst. "We work with a number of distributors and if there were some
kind of persistant problems cropping up, we would question why. We try
to nip those kind of problems in the bud."
Rob
Painter, owner of Milwaukee, Wis.-based Auto Recovery Specialists and
Insure.com columnist, contends that insurers have no procedure in place
to maintain quality assurance. "The attitude is basically, 'If it looks
good, use it,'" he says.
That can lead to
headaches for both policyholders and body-shop technicians. "If a
recycled part comes through to a body shop, it typically has to be
reconditioned by the shop," says Ann Spink, owner of American
Coachworks, an auto body-repair facility based in Denham Springs, La.
The reconditioning includes sanding or grinding to make the part fit
correctly and, often, repainting. "When I get a salvage part, I don't
know the history of the primers and paint. If I literally don't know
[what's on the part], I can't pass any warranty on to you."
Painter
says that sometimes recycled parts are a good idea and that safety
isn't an issue. A recycled dashboard, for example, is cheaper than a
new one and, if it's installed correctly, meets federal safety
standards. After all, the recycled dashboard is an OEM part.
Sheila Loftus, publisher of Hammer & Dolly,
an auto-repair magazine based in Washington, D.C., believes in
recycling auto parts — when appropriate. "It's a viable alternative for
competition," she says. "It's good for the industry and the
environment."
Hurst of State Farm says
that recycled parts are OEM parts and do not pose a safety threat. "If
there is a problem with a recycled part, we'll look into it and take
steps to get it fixed," he says.
"Insurers, under the guise of saving everybody some money, have
strong-armed the average repairer into dumbing down the quality of
their repairs," accuses Spink. "They push so hard to save a nickel that
they're creating a situation in which the repairer might not be doing
all the work correctly."
When you buy
comprehensive and collision insurance, your insurer charges you a
premium rate based on the physical-damage loss history of your specific
vehicle model, which includes repair costs using OEM parts.
Quality
repairs start with OEM parts, consumer advocates say, and every
policyholder is entitled to quality repairs because of the insurance
premiums you pay. "I assure you that every inch of my car will be a
Lincoln Mark VIII [after an accident]," says Ina DeLong, a consumer
advocate and member of the Alliance for Insurance Reform. "The reason
it will be is that [the insurance company] charged me [premiums] for
that particular vehicle. Don't charge me for a Mark VIII and give me
back a generic-mobile."
Both Spink and
DeLong assert that the largest insurance companies in the country will
put up the strongest fight against having repairs done with new OEM
parts. "Those insurance companies don't typically let the consumer
choose the parts," says Spink. Insurers will estimate the damage and
send it to a body shop for repairs with parts specified by the
insurance company's estimate. "Lots of times, a consumer will say, 'I
don't want a junkyard part,' and the insurer will make him or her go to
great lengths [to get new OEM parts]."
Insurance
companies give you the choice of where to take your vehicle and how to
have it repaired. Some say that's an illusion. "What I didn't know —
and State Farm never said to me — was that they call your repair shop
and tell your repair shop that it has to get its parts and supplies
from State Farm vendors, or else State Farm won't pay your claim,"
accuses Jeff Hill, a State Farm policyholder from Endwell, N.Y.
"What [they] pay for is to be put back to exactly where they were, which is a dollar value." |
"The consumer has as much choice as they are willing to be aggressive,"
says DeLong. "What [they] pay for is to be put back to exactly where
they were, which is a dollar value." Sometimes that means OEM parts,
sometimes that means salvage auto parts, she says.
Bill Denya, owner of Denya's Auto Body in Meriden, Conn., and Painter agree that consumers often are not necessarily
entitled to new factory parts. "Consumers want everything new," says
Denya. "They're entitled to pre-loss condition." Why should an
insurance company pay for a new bumper on a 10-year-old vehicle, Rob
Painter asks? "As long as the [underlying structure] is good, there's
no safety issue," and you'll be back to your pre-accident condition.
If
your vehicle requires repairs, make sure the parts being used will
restore your vehicle to its pre-accident condition. Hard-and-fast rules
are difficult to establish because everyone's car is different.
However, Painter says that if the car is two years old or newer, you
should demand OEM parts.
DeLong offers this advice: "Consumers need to get better educated [about the repair process]. That's the only answer."
Many
states are now passing laws to limit what type of parts may be used in
repairing an automobile after a crash. While, in some cases, salvaged
or non-OEM parts are permitted, many states are now requiring actual
manufacturer parts be used in the repairs. Unfortunately this increases
the cost of the repairs, which is reflected in the cost of the car insurance
policy for the consumer. Check with your state's insurance department
for the laws governing aftermarket parts and auto repair procedures.