Study: Car Parts Cost ‘Outrageous’
Thursday, October 10th, 2002 AutoAn annual study by the Alliance of American Insurers examining the cost of auto crash parts produced by car manufacturers has found what the group labeled a "Replacement Parts Rip-Off." The report was based on a 2002 Dodge Grand Caravan Sport, which the Alliance said has a retail price of $24,815. When the Caravan is totaled out and rebuilt entirely from car company parts, the cost soars to $71,631, not including the cost of labor and paint, the Alliance said. Replacement crash parts have been a hot-button issue for insurers ever since 1999, when a class-action suit in Illinois against State Farm Insurance for its use of generic replacement parts for auto accident repairs led to a jury award and punitive damages amounting to $1.2 billion. The case is on appeal.
