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Crash CountPosted 1/20/1998By Denise Caspersen
According to the latest figures from the Insurance Information Institute (1997 Fact Book), auto repair costs per claim increased 61.9 percent over a 10-year period from $1,134.15 in 1984 to an average $1,835.71 in 1993. When broken out by year, the taxes on parts and storage demonstrated the largest portion of increase from an average of $73.79 to $160.62 per claim. The amount spent on parts (OEM, non-OEM and salvage) demonstrated a more gradual change from $602.96 in 1984 to $930.12 in 1994. A recent review of the collision aftermarket industry by Keystone Automotive Industries also shows a gradual increase in parts costs. According to Keystone, a collision parts distributor, collision parts (both OEM and aftermarket combined) generate $9.6 billion in parts sales - approximately 13 percent of the total aftermarket sales of $75 billion. Broken out, OEM collision parts generate $8.6 billion in sales while aftermarket collision parts sales equal approximately $1 billion. Body parts such as fenders, hoods and radiators make up 38 percent of Keystone's product line. An additional 38 percent is composed of chrome and plastic bumpers. The remaining product lines include paint products (18 percent), light truck accessories (4 percent), auto glass (1 percent) and remanufactured alloy wheels (1 percent). The Alliance of American Insurers recently released an information kit promoting the use of aftermarket parts. To obtain a copy of "Aftermarket Parts: A Consumer Issue," contact Cathy Berglund at (847) 330-8532. Data concerning the use of collision aftermarket parts is currently limited. The Automotive Service Association is seeking ways to gather and formulate accurate avenues for analyzing the automotive aftermarket.
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