Re: Rear Ended and Not at Fault
We have to bid no damage parts. The salvage yards know it. Anything "insurance quality" is generally ~70% of new OEM cost. They price it so we can give the shop's markup and barely save a few bucks. I don't look at it as for $5 more I can have new. I see it as I saved $5. The shop would never put a used one on for that difference so the yards cut them an even better deal after we'd authorize a price so they'll use the part (which they may to get additional profit or may not if the customer complains). The yards can't quote us junk and claim it's good then send it to the shops. If the shops complain, we stop using the yards. Certain shops will not use certain yards. Even though that's technically not our problem, we'll work with that to a certain extent. The yards make way more money selling parts to insurance companies than anyone else. For my company alone, there are 19 of us in the metro area. We spend $1-2M each per year on parts. Even as individual adjusters, we have yards we prefer over others for our area of shops. The sales reps at these yards are basically lobbyists. They will definitely test us on ethical issues.
Insurance Adjuster - Auto Property Damage