Pressure on the already high cost of automotive repair can be expected to continue this year. This consumer alert has been sounded by leading short-term insurer Mutual & Federal.
Keith Kennedy, executive general manager: claims at Mutual & Federal, commented: “We are aware of public concern over the rising cost of vehicle repair. Unfortunately, the growing number of imports on our roads and the import content in locally manufactured models means the automotive repair sector will remain vulnerable to cost pressures.”
The insurer is concerned that one effect of rising costs could be to widen the pricing differential between pirate parts and manufacturer-approved components — increasing the temptation among consumers to opt for non-approved parts.
Kennedy added: “We urge all vehicle owners to resist this temptation. Pirate-part fitment is not an appropriate response. The safety of the driver, his family and other road-users could be endangered by fitting pirate parts.
“In addition, the use of OE [original equipment] or manufacturer-approved parts is mandatory for warranty purposes. A vehicle owner can invalidate his warranty protection, turning a supposedly cheap option into a very expensive exercise.
“In a pricing environment such as this, all players in the market — insurers, motor manufacturers and the automotive repair industry — have a duty to alert consumers to the possible risks of pirate-part fitment.”
Mutual & Federal has given an insurance industry lead by drawing consumer attention to the effect of motor marketing trends on automotive repair costs.
In recent years, there has been an influx of imported vehicles. It is estimated that 48 makes and more than 1 200 models are now locally available.
The effect on repair bills was spotlighted by a recent underwriting calculation at Mutual & Federal involving parts “baskets” needed to complete repairs after various types of collision.
One comparison showed that costs for a local vehicle in the R110 000-to-R140 000 price range could reach R28 435 versus R34 653 for an import. The differential increased in the R141 000-to-R170 000 range — R21 062 versus R46 672.
New technology and advanced features also affected repair costs.
A single airbag replacement, including the various components, may cost up to R25 000 to R30 000 for a luxury vehicle. For an entry-level vehicle a single airbag replacement may be between R3 000 and R6 000.
Some luxury vehicles have up to 48 different onboard computers for the various electronic systems. Rain sensors and digital displays are driving up the average cost of windscreen replacement.
The latest automotive development — front bumper-mounted sensors — could have a major effect on the cost of a bumper-bashing.
Keith Kennedy noted: “A range of macro-economic, social and automotive industry trends are having an effect on vehicle repair costs. The public can accept our assurance that we are as concerned as they are.
“We are currently examining possible solutions that respect the need for quality repair while trying to combat pricing pressures.
“We will do everything possible to assure value for money for our policyholders. But we repeat our alert to the cost-sensitive consumer — the cheap option or the backyard repair solution can be easy on your pocket today and disastrous tomorrow. Please don’t do it.”