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Letter to the Editor
Thursday October 3
Alliance of American Insurers Comments on IL Supreme Court's Decision to Hear State Farm Aftermarket Parts Case Appeal
The Alliance of American Insurers had the following comment on the recent decision by the Illinois Supreme Court to hear an appeal of a lower court's ruling in the Avery v. State Farm class-action lawsuit regarding the use of aftermarket parts. The lower court awarded the plaintiffs $1.2 billion in damages."The Alliance of American Insurers is pleased with the court's action. The lower court ruling has had a chilling effect on the use of aftermarket parts throughout the country, denying the cost savings their use provides directly to insurers, and indirectly to consumers," said Kirk Hansen, Alliance director of claims. "Alliance studies over the past 20 years have repeatedly shown the high cost of car company parts, which on average cost 60 percent more than aftermarket auto parts of equal quality."
Ann Spragens, Alliance senior vice president and general counsel, added that the case once again clearly demonstrates the need for reform of the class-action court system. "The class in the State Farm case should never have been certified because it consisted of policyholders from 48 states, each with its own differing laws and regulations pertaining to the use of aftermarket parts," Spragens said.
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