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State Farm / PartsTrader Program Creates Heated Controversy

Joe Marconi

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I don’t know where you stand on this issue, but State Farm’s mandate that Collision and repair shops must use PartsTrader parts to procure parts has started a storm of controversy. The Alliance of Automotive Service Providers of Minnesota (AASP-MN) has filed a formal complaint with the Minnesota Department of Commerce, requesting legal action to prevent State Farm from continuing this program.


Is this a sign of what’s to come, with regard to insurance companies? Will this intrusion into our business become the norm and continue to erode our margins? Many, including the ASA of Ohio and many groups and other organizations across the country, believe so.


How do you stand on this issue?


For more information go to: http://www.partsandpeople.com/node/5782


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Let the private insurance company operate how they want. Just like any shop owner has the right to refuse to work on certain cars or refuse to use certain parts. You can also refuse to work on cars that fall into this situation. Just like John Eaves did, the guy heading up the lawsuit.


To quote John Eaves from the article

"Shops have ongoing business relationships, and this program is designed to destroy them. And that’s against the law.”

No, it is not against the law. It is perfectly understandable from the insurance companies perspective to dictate what parts you can and can't use to repair cars under their policy. This sounds a lot like aftermarket extended warranties, which everyone here seems to dislike (for the most part), but nobody is heading up a lawsuit against them.


If the program was as terrible as Eaves makes it out to be, I would think there would be more pushback from other shop owners, and State Farm would drop the whole idea.

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