Mutual and Greg Chandler’s Frame & Body, LLC, affirming the use of salvage/recycled OEM crash parts in vehicle repairs and stating that recycled parts are diametrically different from aftermarket parts.

Louisiana is the Next West Virginia The Attorney General of Louisiana filed suit

against State Farm Insurance recently alleging the insurer has violated the state’s Unfair Trade Practices and Consumer Protection Law by steering consumers to direct repair providers that have signed agree- ments with the insurance company. State Farm cur- rently holds the largest share of auto insurance policies in Louisiana and in 2012, wrote one third of all auto insurance policies in the state totaling over $1 billion in premiums.

The lawsuit was filed in Louisiana’s 19th Judicial District Court and alleges State Farm is using scare tactics to steer Louisiana consumers to preferred repair shops. State Farm has seen several other law- suits recently targeting its direct repair program, PartsTrader. The Louisiana lawsuit also alleges that the insurance provider is forcing its preferred shops to perform vehicle repairs cheaply and quickly,

“Regrettably, not all state attorneys general have done their homework and educated themselves about our industry and the critical role that recycled OEM

automotive parts play in the market." — ARA CEO Michael E. Wilson

using sub-standard parts and methods that may not meet consumer safety and vehicle manufacturer performance standards. In remarks about the law- suit, Attorney General Buddy Caldwell made dis- paraging comments about the utilization of recycled, genuine OEM parts, saying that State Farm deceives customers by steering them to use cheaper or used auto parts, or parts found to be knock-offs of ques- tionable quality. Caldwell’s comments about recycled OEM parts are similar to those made in 2011 by West Virginia’s then-Attorney General Darrell McGraw in reference to a lawsuit against Liberty Mutual Insurance Company.

March-April 2015 | Automotive Recycling 43