Auto insurers can access cheaper replacement parts

Parts Direct, the wholly owned subsidiary of AutoWorks International Ltd., has fully designed, developed, and tested its PartScan software so that it is now available for ‘live’ installation and network systems integration with insurance company clients.
Testing of the software was implemented in order to ensure efficient functionality at the automobile repair facility and wholesale parts distributor levels.
“Live, in house product and services demonstrations have been requested by several automobile insurance companies and a provincially operated mutual automobile insurer in Canada,” Brad Brock, president of Parts Direct, says.
Parts Direct offers an on-line automated service bureau allowing insurance companies to use the PartScan technology and related services to purchase replacement parts at a significantly lower cost than through automotive repair facilities. The replacement parts are ordered for the insurer by PartScan directly from the wholesale parts distributor and ‘drop shipped’ to the appropriate automobile repairer. PartScan’s accounting system then invoices the automobile insurer directly for parts purchased and services provided.
This procedure is different from current industry standard practices, where each individual automotive repairer purchases and invoices the insurance companies for the full retail value of these parts.
The size of the automobile repair industry in Canada is estimated to be $2.8 billion. The automobile repair market encompasses the total costs incurred to repair damaged vehicles. Parts and labor are the two major components involved in vehicle repair, with parts comprising approximately 45% of the total cost of repairs. The aggregate value of the automobile replacement parts market in Canada is estimated to be $1.26 billion.
AutoWorks International Limited is an international software design, development and services provider.