Verdict Alert — Insurer Ordered to Pay $17 million to consumers

In the most recent ”after-market parts” lawsuit to go to verdict, a Missouri jury ordered American Family Mutual Insurance Company to pay $17 million in damages to class members who were forced to accept non-orginal parts when their cars were repaired. 

Most auto-insurers, like American Family, promise in their policies that, after an accident, they will pay for replacement parts that are “similar in quality, fit and performance.” 

But guess what?  They don’t really mean it. Rather than pay for “similar in quality” parts, insurers across the country require their captive auto-body shops to use aftermarket replacement parts that generally are of inferior, and sometimes dangerous, quality. 

Aftermarket parts are replacement parts often made overseas that are used instead of original equipment from car makers.  Although they may look fine when the car or truck is first repaired, problems often arise later. Read more »