Keep Your Junk!

by Burl Richards, ABAT President

Lately, it seems like insurance companies are insistent on shops buying nothing but junk!

Here in East Texas, it’s not at all unusual to get an insurer estimate which indicates they located a needed part in some random location, states away, often from a junkyard. For example, we recently needed a running board for a job, and they wanted us to obtain it from some vendor we’d never heard of in some random state like Ohio. Well, I have a couple issues with that, but the main problem is how often those parts are complete garbage.

In my experience, once we receive the part, it is damaged, in poor condition or just not at all how it was described around 90 percent of the time. We used to be able to order the part and pay cash on delivery – after we inspected it – but these days, no one wants to do business that way; they require payment over the phone before they’ll dispatch the part…which we cannot even use. Then, we have to invest administrative time and energy into processing a return and trying to get a refund. Most of the time, we end up with a credit for these vendors halfway across the country, vendors that seem to have a propensity for lower quality parts which is why we requested a refund in the first place. 

And even though the insurance company directed us to use the vendor, complaining to them is useless – they’ll tell you that it’s not their vendor; it’s not their problem. Of course, they’ll claim that we can purchase the part from whichever vendor we choose…but they will only pay that specific amount. Well, good luck finding a quality running board, which typically costs $400, for $70. Although the insurer selected that part and that vendor, they wash their hands of the situation as soon as an issue arises. Because they aren’t concerned with the quality, just the cost. It’s a game, and insurance companies play that game well – a little too well.

They don’t want to allow markups, and they don’t care about the administrative time and additional costs associated with dealing with these junky parts. It’s ridiculous! The situation is putting a lot of pressure on shops and their bottom lines in an economy where we’re already feeling the squeeze. The whole situation is so frustrating that many shops just throw their hands in the air and eat the cost. 

The other option is to bill the difference to the customer, and though we’re all programmed to take care of the people who entrust their vehicles to us, sometimes the best way we can do that is by explaining the situation to the customer, educating them on why the right part is going to cost a little more out of pocket and having them pay the difference or deal with their insurance carrier since it’s their contract. I understand that we want to remove the burden for them, but insurers make that incredibly difficult. After all, just like we didn’t choose the vendor that the carrier wants us to use, we didn’t choose the policy that the customer selected, so sometimes, there’s only so much we can do. 

But I’m sure that’s not the only way to address this situation. I’d be curious to know how other shops are dealing with it, especially those who have had success with it. Are you seeing this problem with junkyard parts in your shop? How do you deal with the return process? Have you been able to convince the insurer to step in? 

As an association, ABAT is here to bring problems like this to the forefront, but we don’t have all the answers. We’re a sounding board for the Texas collision repair industry, but ABAT is only as good as our members and others who are willing to contribute their thoughts to help us come up with valuable solutions, so we can arm Lone Star shops with the information they need most. 

That’s also the goal of the Texas Auto Body Trade Show each year, and this year’s event is shaping up to be a doozy! It’s a great opportunity to connect with your collision peers, visit vendors to learn more about the products they offer and learn from some of the best respected trainers in the industry. Mark your calendars for September 12-13, and learn more about the 2025 educational agenda on page 16. Updated information will be posted at abat.us/trade-show as it becomes available.

Want more? Check out the July 2025 issue of Texas Automotive!

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