Chapter 8 Material Damage Flashcards
Material Damage
damage to physical property and would be associated with claim involving Collision, Comprehensive, Property Damage, and UMPD coverages.
________ is ultimately a large factor in how much the company pays out in claims.
Material Damage
Basic Nomenclature
Bumper group
Front panel, grille, and lamps
Hood group
Fender group
Inner structure
Mechanical - engine, cooling & air conditioning
Roof group
Door group
Pillars, rockers & floor
Quarter group
Trunk lid group
Rear body panel
Structural Design
structural design of a vehicle and how it reacts in an accident is one of the most essential pieces of damage analysis
Conventional Frame Design
Ladder Frames –For these frames, the frame is a separate structure from the vehicle components that are bolted onto the frame. Today, these frames are much less common than in the past and are most often seen on large pickup trucks and some larger SUVs.
Perimeter Frames – These frames are still a separate body and frame but, the shape was slightly differ to allow for positioning of the components. They were mostly seen on SUVs and some older model large luxury vehicles (i.e. Cadillac & Lincoln) until the rise in popularity of unibody design.
Unibody Design
Together, the welded components make up the structural integrity of the vehicle. There is not a separate frame that stands on its own. This design is used on most vehicles today, including SUVs.
Options for Damaged Parts
Appear Allowance, Repair, Replace
Appear Allowance
Monetary compensation for the damage in lieu of repairing or replacing the damaged component
Repair
Repairing the existing damaged part by using an industry-accepted repair technique for the type of material (i.e., metal, plastic, aluminum, fiberglass, etc.)
Replace
Actual replacement of the damaged part with one that is undamaged
Original Equipment Manufacturer
OEM
Made by or built to the specifications of the vehicle manufacturer
Located in the CCC database
The most common replacement parts
The manufacturer sets the price
Sold through new vehicle dealerships
Sold at a discount to the repair industry
Sold typically as individual parts, not assemblies
Aftermarket
parts are those created by companies other than the OEM
parts are sold online or in auto parts stores but are regularly used by body shops to repair vehicle
Parts that are manufactured to the same general specifications of the OEM
Manufactured (and warrantied) by companies other than the OEM
Sold by vendors other than those that sell new OEM
Parts that are typically mechanical: Radiators, A/C Condensers, Alternators, etc.
New Parts
Both OEM and Aftermarket parts are available as new parts. New parts would be defined as in pristine condition and not having ever been used on a vehicle previously.
LKQ which stands for “like, kind, and quality”
(1) recycled, (2) reconditioned and (3) remanufactured
Recycled
Lightest level of prior usage
Recycled parts can be a very cost-effective way to repair a vehicle and should be considered first with the estimate is being written. Recycled parts come from existing vehicles and are sold through independent recyclers who like to sell these parts as assemblies. The parts are usually interchangeable between vehicle years. Prices for these parts are negotiable and then marked up at shop to provide a profit margin (ranging from 20-25 percent across the country). Recycled parts may require clean-up and disassembly prior to use. The CCC database contains recycled part labor, refinish, and operation times.
Reconditioned
Parts that incurred some but limited damage during usage and can be brought back to their former condition without much difficulty are known as reconditioned parts (sometimes referred to as refurbished parts). The most common examples of reconditioned parts are bumper covers and wheels. These parts are sold by vendors other than those that sell new OEM.
Remanufactured
The third and final category of used parts is remanufactured. These parts were used to the point they were worn out and had to be rebuilt before they could be used again. Such parts are typically sold be vendors other than those who sell OEM – however certain dealerships may sell remanufactured engines, transmissions, starters, alternators, etc. The most common OEM parts are mechanical (engines, drive axles, gear box assembly, etc.).
Part Replacement Guidelines
Aftermarket parts should be considered on appraisals when the non-crash or crash part is of equal or better quality than the part being replaced and OE Surplus, recycled or reconditioned is neither available nor cost effective. State regulations concerning identification and documentation of usage will be adhered to and supersede any of the previous guidelines.
Aftermarket parts
defined as those manufactured by producers other than the OEM. They can be divided into two categories:
Non-Crash Parts
Crash Parts
Non-Crash Parts
These consist of bumper covers, suspension, steering, brakes, engine, exhaust, radiators, a/c condensers, electrical components, glass, wheels, lamps and other mechanical parts.
Crash Parts
This terminology is applied to outer body sheet metal, grilles, header panels and headlamps. The following guide applies to aftermarket crash parts
NGIC does not subscribe to the use of Aftermarket structural parts (bumper reinforcements and other structural parts –including but not limited to radiator supports, apron panels, etc.).
If a crash part is being considered for replacement, a Certified Crash Part should be utilized. If a warranty exists on the part being replaced, the company will agree to assume the terms and conditions of the owner’s current warranty on that part when an aftermarket is used.
Refinish Types
Single Stage Paint
Base coat/ Clear Coat
Three Stage Paint
Two Tone Paint
Single Stage Paint
- Found on older vehicles
- Mostly solid non-metallic colors
- Does not require additional clear coat
- When sanded the color will come off onto the sandpaper
Base coat/ Clear Coat
Clear coat, color with clear coat on top (clear coat can look white)
