You’ve heard of the different types of insurance: auto, home, renters, watercraft, life and even traveler’s insurance. But have you heard of automotive recycling insurance. If you are an auto recycler, chances are you already have a policy. If you’re a home owner who has adopted a green lifestyle, you probably don’t know what automotive recycling insurance is.
Automotive recycling insurance covers those businesses in the auto recycling industry. Coverage with this type of policy includes: commercial property, commercial general liability, commercial automobile, commercial inland marine, garage liability, physical damage, workers’ comp and umbrella coverage. If you purchase a part from an automotive recycler, or have any maintenance completed on your vehicle at a garage that recycles, it’s important to find out whether or not they carry this specialty insurance.
This, then, leads to the question: “What is automotive recycling?”
Automotive recycling is the act of purchasing damaged, used or abandoned vehicles from individuals or insurance companies. These vehicles are typically late-model cars, but may be brand new, depending on the situation. Once the vehicles are purchased, they are dismantled. Think of the dismantling process as hitting the rewind button at the factory.
If a car has been damaged prior to purchase, any unusable parts are recycled for their materials, while undamaged parts are sold to body shops, used car dealers, private individuals and garages. The parts that have been taken are, in turn, used to repair existing vehicles.
Why Is Automotive Recycling “Green”?
Automotive recycling has a tremendous impact on conservation. By utilizing these parts, rather than OEM, original equipment manufacturer, parts, virtually no energy is consumed. In addition, by purchasing vehicles that would otherwise be abandoned along the streets, in junkyards or in field, automotive recyclers are keeping our planet clean and safe.
By conserving energy by reselling and reusing vehicle parts, we conserve billions of barrels of oil which reduces are dependency on foreign sources. This is an energy savings that could be used to heat hundreds of thousands of home each year. When vehicles are recycled, the reduction in energy use also reduces air pollution, making the air safer to breathe for everyone.
Where Can I Find Parts?
If your vehicle needs parts or maintenance, it makes sense to look for a garage or body shop that utilizes recycled parts. Not only will you be helping the environment, but you’ll be helping your bottom line:
- OEM parts are typically more expensive and can take longer to locate
- Imported parts are cheaper but of lesser quality
- Recycled OEM parts are immediately available and cost-effective
One of the easiest ways to find recycled parts, or recycling centers for your parts, is to sign on to Earth911. The site allows you to search by zip code, address or state and returns a full list of garages, body shops and recyclers in your immediate area.
If you have a vehicle that needs repairs, finding a shop that uses recycled parts will save you time and money while allowing you to help the environment. Before dealing with any shop, make sure that they have automotive recycling insurance. The shop should have coverage adequate enough to protect you should the garage damage your vehicle, either immediately or down the road with an improperly installed part. Automotive recycling makes sense for the environment; do your part and look for garages and body shops that participate in a recycling program.