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Letter to the Editor
Tuesday September 24
Ontario Consumers to Pay Additional Premium to Return Cars to Original Condition; Additional Cost Proposed for Using OEM Parts
As part of the efforts of the Ontario government to reform auto insurance, the Auto Insurance Review Committee sent to interested stakeholders on September 16, a listing of proposed changes to the Insurance Act and other laws, including a new proposal that customers must pay for additional coverage if they want their collision-damaged vehicles to be repaired back to original condition through use of Original Equipment Manufactured (OEM) parts.The Review Committee received a report from the Collision Industry Action Group (CIAG) profiling the problems repair facilities are experiencing with "aftermarket" collision repair parts and urging the government to ensure these parts are safe (by meeting OEM standards incorporated in federal legislation) and fit properly.
Instead, the Review Committee is proposing:
"For consumers who have a preference for original parts, require insurers to offer optional coverage where only original equipment parts may be used in collision repairs." The Committee is proposing that an additional insurance premium cost be charged to motorists who want their car or truck repaired to original pre-accident condition using the body parts that were made by the original manufacturer of the car.
"Shop and consumer complaints are epidemic, and lawsuits are still outstanding from consumers who found that the aftermarket parts installed, often without their knowledge, failed to fit, perform or had acceptable finish, compared to the original equipment parts. To now charge these consumers additional premiums to repair their car back to the way it was before the accident using the car manufacturer’s own parts is a slap in the face to motorists who value their vehicle and will add fuel to claims of diminished value of their car," said John Norris of CIAG.
One recent study showed in a comparison test, that the a car repaired with aftermarket parts was valued at a significantly reduced price by used car experts compared to a car repaired with original equipment parts.
In the United States, State Farm Insurance was hit by the courts with a $1.18 (U.S.) billion fine for knowingly having installed on their insured's cars, aftermarket or non-original equipment parts that they knew were not the same fit and function as the OEM parts, and those aftermarket parts failed to bring the car back to pre-accident condition. A number of similar lawsuits have been filed in Canada.
Ontario consumer law does not require that a motorist is told or given any documentation to advise them that the collision repair parts put on their car originated with their own car manufacturer that meet federal safety standards or if they are from private parts factories in Thailand, India or Taiwan and are not required to meet any safety standard for use in Canada.
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