An 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.
