AIG auto insurance shoddy service

I just wanted to say how dissatisfied I am with the service I received

from AIG. They have been my insurance company for the last 4 years

(approximately). The first accident I've been in in the almost 20 years

I've been driving happened 2/23 of this year. I was the only car

involved in the accident to my 2007 Honda Accord. I was very upset to

find out that AIG didn't want to replace the bumpers on my 2007 Honda

Accord with Honda parts; rather, they wanted to replace them with

cheaper after-market parts. I fought with my adjustor, David Festa,

about it and then further with his supervisor, Mark Bowers. After

expressing my total dissatisfaction, they then left me a message stating

that they would "offer" out of "customer service" to pay for half the

cost of the Honda bumpers if I would pay for half, which I refuse to do.

Before this phone call, JMA Collision called and stated they would put

the Honda bumpers on for me. This first accident was the test to see

how well AIG treated me, which isn't very well. I called a former

insurance agent of mine to see if they typically replace parts on a new

car with after-market parts, and he said he would have NEVER treated me

like that, that yes, they would have replaced my Honda bumpers with

actual Honda parts and no after-market parts since my car was less than

a year old. Needless to say, I will be switching insurance companies as

soon as I can. I don't appreciate the way I've been treated. I don't

make deals with insurance companies as far as paying half for the parts

I deserve on my new car, especially when I'm told the difference is only

about $200. I could see if my car was five or six years old, but it

isn't. I could also see if I had a history of accidents and speeding

violations, but I do not. My record was spotless before 2/23. This is

the first claim I've ever made. I hope this gets to the right people to

make some permanent changes with AIG. No one with my driving record

with a new car should have to go through the frustration and aggravation

I've been going through the past three weeks. It's all about making the

customer happy if you want to keep them as a customer and not haggling

over something so stupid as a $200 difference. I'm not asking for a

lot, just what I, amongst others, think I deserve. I am currently

checking into quotes from other insurance companies who want me as a

customer.

Sincerely,

Patricia

Email User

Comment On This

Patricia,

I'm sorry to hear that you were in an accident. It's unfortunate that you have to deal with auto repairs when your car is only one and 1/2 model years old.

In order to be compliant with State and Federal regulations, auto insurance companies handle vehicle repairs according to industry standards. The auto industry deems that aftermarket parts are acceptable replacements for a vehicle that is more than one model year old, or a vehicle that has exceeded 12,000 miles at the time of the loss. As your accident occurred in February of 2008, and because your vehicle was constructed in mid-to-late 2006 or early 2007, it is likely that your vehicle was old enough to qualify for the use of aftermarket parts.

Aftermarket parts have a poor reputations due to many misconceptions. Most people consider aftermarket parts to be "crash parts", meaning that they were salvaged from vehicles that were in accidents. The common perception is that aftermarket parts are damaged in some way and inferior to our vehicles. This is simply not true.

Vehicle manufacturers such as Honda will only manufacture original equipment manufacture (or OEM)replacement parts for each of their models of cars for a limited amount of time. When they decide to stop manufacturing OEM parts for older vehicle models, new parts can be obtained from other companies that are constructed to the same specifications that Honda uses. True aftermarket parts are brand new parts that are made by a company other than the vehicle manufacturer. These parts come with warranties and will looks exactly the same as those parts sold by Honda.

Often the aftermarket prices for parts are somewhat better than those from the manufacturers. Insurance companies will obviously favor the most cost-effective way to settle a claim, and will look to pay for aftermarket parts where it is acceptable to do so.

Beware of some repair shops that will campaign for the use of OEM parts, often telling insurance carriers that the aftermarket parts were ordered but don't work/fit correctly/are defective in some way, then will pocket the additional monies paid for OEM parts while they install the aftermarket parts on the vehicle. While most shops are reputable and hardworking, there are a few shady characters out there. The best way to defend yourself from this is to ask for the part invoices and have those invoices reviewed by your agent to confirm that the parts that the shop purchased are truly OEM.

Most companies will offer to pay the aftermarket cost for the repair, and advise the customer that if they felt that only OEM parts would be acceptable, that the customer would be responsible for the difference in the OEM cost and the aftermarket cost. Some carriers will handle long-term customers a bit differently and go to greater expense for customers who have been loyal, but that is an exception rather than a norm. Given AIG's recent legal troubles, changes in upper management and falling stock prices, I'd expect that they are looking to be as efficient as possible in their claim settlements. I would recommend that you follow the advice of the repair shop that you trust and use the parts that they recommend.