Costs Savings to the Public
Savings to consumers under this bill are twofold: repairs and insurance costs. Many consumers have raised their collision deductible limits, making themselves virtually self-insured on small repairs, so they often end up paying for bumper repairs or replacement out of their own pocket.
In a 1990 study by the Insurance Institute for Highway Safety, four crash tests were performed on three different models of the popular Plymouth Horizon. The total damage for all four tests was as follows (1990 labor rates and parts prices):
1983 Horizon with No-Damage 5 MPH bumpers $ 287
1983 Horizon with weaker bumpers $ 918
1990 Horizon $ 1,476
Obviously, repair and replacement costs skyrocket with weaker bumpers. But consumers pay in other ways, too. Because replacement auto parts can cost up to three times the expense of original parts, insurance claims can quickly mount. Insurance rates are based on the expected performance of a specific model, based on the industry’s history with that model. Therefore, models with high repair histories cost more to insure. In addition, the cost of an individual policy can increase based on the number of claims submitted.
The best way for consumers to avoid high repair and insurance costs is to select a safe, crashworthy vehicle. This can only be accomplished if consumers have all the information they need to make an informed decision. State passage of the Consumer Bumper Quality Disclosure Bill is the first step to providing citizens with this key information on a major purchasing decision.
