Getting into an accident can be stressful, and navigating the repair process can be confusing, especially if you don’t know what to look out for on a body shop estimate. In this post, we will provide an overview of the key three-letter acronyms to look out for, as well as tips for verifying the quality of parts being used and identifying miscellaneous charges that may be hidden in the estimate.
Understanding the Language of a Body Shop Estimate:
Collision repair estimates can be filled with technical jargon and industry-specific language that can be difficult for consumers to understand. It’s important to take the time to read through the estimate carefully and ask questions if anything is unclear. Here are some of the key terms to be aware of:
Body Shop Estimate Three-Letter Acronyms to Look Out For:
Several three-letter acronyms can indicate important information about the repair process and help consumers make informed decisions about their repair options. Here are some of the most common acronyms to watch out for:
- OEM: Original Equipment Manufacturer – This refers to the company that designed your vehicle. They have put all the money, time, research and development into making your vehicle as safe as possible.
- LKQ: Like Kind and Quality – This almost always refers to salvaged or recycled parts.
- A/M: Aftermarket – Aftermarket parts are typically a little less expensive, but buyers beware. They are not crash-tested or documented to be as safe as OEM parts. By definition, they must be made differently than OEM parts, which means they will never be what’s best for your vehicle.
- AMR: Actual Cash Value minus Salvage, is a calculation used by insurance companies to determine the amount they will pay for a totaled vehicle. This calculation can be subject to manipulation by insurance adjusters, who may undervalue the vehicle in order to save the company money.
How to Verify the Quality of Parts Being Used:
It’s important to ensure that the parts used to repair your vehicle are of high quality and appropriate for your vehicle. Here are some tips for verifying the quality of the parts being used:
- Ask the repair shop if they use OEM parts or if they use aftermarket or LKQ parts.
- If aftermarket or LKQ parts are being used, insist that OEM parts be used instead.
A/M and LKQ are two acronyms that can be red flags for consumers seeking the correct repair for their vehicle. These acronyms are often used to indicate that aftermarket or recycled parts will be used in the repair process, which can raise concerns about the quality and safety of the repairs.
Aftermarket parts (A/M) are made by companies other than the vehicle’s original manufacturer. Aftermarket parts may be of lower quality and may not fit or function as well as OEM (Original Equipment Manufacturer) parts. This can result in a subpar repair job that may not meet the safety standards set by the vehicle manufacturer.
Like Kind and Quality (LKQ) is a term used to describe used or recycled parts that are similar to the original parts that came with the vehicle. While LKQ parts can be a cost-effective option, they may not be of the same quality as OEM parts and may not fit or function as well. This can result in a repair job that may not meet the safety standards set by the vehicle manufacturer.
The use of A/M and LKQ parts can be a way for insurance companies and some body shops to cut costs and increase profits. Insurance adjusters may pressure repair shops to use cheaper parts in order to save money for the insurance company, even if those parts may not be the best option for the repair. Some body shops may also partner with insurance companies through Direct Repair Programs (DRP), which promise to drive more business to the shop in exchange for using cheaper parts and cutting costs.
However, using cheaper parts and cutting corners on repairs can have serious consequences for consumers. It can result in a repair job that does not meet the safety standards set by the vehicle manufacturer, which can put the driver and passengers at risk in the event of another accident.
Consumers should be aware of the risks associated with A/M and LKQ parts and ask questions about the parts used in their repair. They should also be wary of repair shops that participate in DRP programs and should seek out independent repair shops that prioritize safety and quality over cost-cutting measures.
Frequently Asked Questions:
Q: What should I do if I think the insurance company estimated my repair too low?
A: If you believe that the insurance company has underestimated the cost of your repairs, you may have the right to dispute their estimate by way of the appraisal clause in your policy. If your policy supports the appraisal clause, an independent appraiser may be hired to assess the damage and provide a more accurate estimate. It’s important to communicate with the insurance company in writing and keep a record of all communications. If the insurance company still refuses to provide a fair estimate, you may need to consider seeking legal advice. Remember that you have the right to choose where to have your vehicle repaired, and you can choose a repair shop that prioritizes quality and safety over cost-cutting measures.
Q: Can I choose where to have my car repaired?
A: Yes, in most cases you have the right to choose where to have your car repaired. Your insurance company may recommend several repair shops, but they will always only suggest shops that are involved in their partnership programs, which is never to the advantage of the consumer or the safest repair.
Q: Can the repair shop use OEM parts instead of aftermarket parts?
A: Yes, but it’s important to understand that insurance companies will almost always fight against the use of OEM parts because aftermarket parts are usually cheaper. The concern of such practices has been addressed above.
Conclusion:
Understanding collision repair estimates and the language used in them can be a challenge, but it’s important to take the time to review the estimate carefully and ask questions if anything is unclear. By being aware of key three-letter acronyms, verifying the quality of parts being used, understanding labor charges, and identifying miscellaneous charges, you can make informed decisions about your repair options and ensure that you receive high-quality repairs at a fair price. If you have any questions, please contact us directly!
Resources:
https://www.nylundscollision.com/how-to-read-a-body-shop-estimate/
