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Insurers Force Carmakers To Reduce Repair Cost
Insurance companies have been suffering huge costs due to the high cost of auto repairs. With the number of consumers taking auto insurance increasing, the value of liability carried by companies have also increased. The insurance companies which had successfully lobbied for reduction in health care costs have now focused on auto companies.
Some of the measures that insurance companies have asked carmakers to undertake are installing high-end dent removing equipment in service centres, standardize labour costs and supplying child parts. These measures, they believe will reduce repair costs extensively. Maruti Suzuki and Hyundai Motors, the country's two leading carmakers have already agreed to supply child parts.
The insurance companies have been able to persuade carmakers to reduce repair costs using a wealth of data that they have collected from insurance claimants. This reduced repair costs will also help vehicle owners too as the extent of cover for their vehicle will come down due to depreciation.
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