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Automobile Insurance Vehicle Repair Practices: Politics, Economics, and Consumer Interests
Author(s) -
Cole Cassandra,
Maroney Patrick,
McCullough Kathleen,
Powell Lawrence
Publication year - 2015
Publication title -
risk management and insurance review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.386
H-Index - 16
eISSN - 1540-6296
pISSN - 1098-1616
DOI - 10.1111/rmir.12032
Subject(s) - variety (cybernetics) , automobile insurance , business , crash , actuarial science , finance , computer science , artificial intelligence , programming language
There is a continuing debate related to insurers’ use of direct repair programs, in which they contract with particular body shops to perform insured auto repairs according to terms agreed to by the insurers and repair shop owners. A similar debate exists related to insurers specifying the use of aftermarket crash parts instead of original equipment manufacturer parts to replace damaged vehicle components, such as door panels, fenders, and hoods. This study examines these issues from a variety of perspectives providing initial evidence that if properly used, these cost containment tools can be beneficial to consumers and insurers.