Report: Rhode Island Drivers Could Pay Highest in Nation Auto Insurance Premiums If Legislation Banning Aftermarket Parts is Allowed to Pass

PROVIDENCE, Rhode Island, May 2 -- The Montana Chamber of Commerce issued the following news release:

After a morning that tested the business knowledge of students across Montana, Team 8 from Heritage Christian High School in Bozeman was named the 2018 Challenge Bowl champion. Rounding out the top three was Team 2 from Dillon Middle School in second-place and Billings Skyview in third-place.

"We had an amazing morning as students across the Treasure State participated in the second ever Challenge Bowl," said Alexandria Klapmeier, communications director for the Montana Chamber of Commerce. "We saw teams like Billings Central increase their stock price by $20 after quarter two and we also saw how students reacted when the economy tanked. We're very proud of everyone's hard work and are happy to award these deserving students scholarships."

The Challenge Bowl is an opportunity for the top 16 teams from the spring and fall semester of the High School Business Challenge (HSBC) to go head-to-head and win scholarship money. The HSBC is an eight-week business simulation during the fall and spring where students make business decisions for a company they run. During the Challenge Bowl, students complete four inputs to represent four business quarters.

Scholarships are awarded to all participants in the Challenge Bowl. First place team members receive $1,000 per student; second place, $750 per student; and third place team members each receive $500. Participants not placing in the top three each receive a $100 scholarship.

Here are the full results and final stock prices from the second ever Challenge Bowl (Some schools had multiple teams participating):

Heritage Christian - Team 8 - $46.80/share

Dillon Middle School - Team 2 - $46.50/share

Billings Skyview - $42.95/share

Anaconda - Team 10 - $42.55/share

Anaconda - Team 11 - $39.75/share

Anaconda - Team 12 - $39.35/share

Dillon Middle School - Team 1- $38.90/share

Anaconda - Team 9 - $38.15/share

Dillon Middle School - Team 3 - $30.54/share

Malta - Team 5 - $26.15/share

Billings Central - $25.60/share

Poplar - Team 15 - $22.95/shareDES PLAINES, Illinois, May 3 -- The Property Casualty Insurers Association of America issued the following news release:

The Property Casualty Insurers Association of America (PCI) today released a detailed research brief on the impact of 20 pieces of legislation promoted by the Auto Body Association of Rhode Island (ABARI) that have become law since 2003, and the negative impacts of new ABARI supported legislation (H-8013, S-2679) that would micromanage the claims process by banning the use of high quality aftermarket parts for collision repairs. Should this legislation pass, PCI estimates that Rhode Island's already high overall repair costs would rise, resulting in premium increases that could leave Rhode Island drivers paying the highest property damage liability premiums and second highest collision premiums in the United States.

"More than a decade of special interest bills promoted by the Auto Body Association of Rhode Island have resulted in Rhode Island's 700,000 licensed drivers paying some of the highest auto repair costs and auto insurance premiums in the nation," said Frank O'Brien, vice president of state government relations for PCI. "Now ABARI is back with their worst bill yet, legislation to effectively ban the use of high quality, reliable aftermarket parts during the repair process. This has absolutely nothing to do with safety, and everything to do with increasing auto body shops' profits at the expense of Rhode Island drivers who could end up paying THE highest auto insurance premiums in the nation. Rhode Island doesn't need the dubious distinction of having the highest auto insurance costs in the country. PCI urges the General Assembly to stand with Rhode Island's consumers by rejecting House Bill 8013 and Senate Bill 2679."

Decade Plus of ABARI-Supported Legislation Continues to Take Its Toll on Rhode Island Auto Repair Costs and Auto Insurance Premiums

PCI's research brief finds that the collective impact of 20 auto body shop bills passed since 2003, all of which limit the ability of auto insurers to provide "checks and balances" in the claims process, is Rhode Island consumers paying among the highest auto body repair costs and auto insurance premiums in the nation.

Rising Auto Body Repair Labor Costs

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From 2006 to 2017, average auto body repair labor rates in Rhode Island have increased an incredible 19.6%, while neighboring states increased 11.2%.

Rhode Island's average auto body repair labor rate is now 7.8% higher than neighboring states.

Rhode Island's auto body shop-owners' margins have increased 11.2% compared to just 0.9% seen across neighboring New England states.

Rising Insurance Costs

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Over the past 5 years, the average claim rose from $3,347 to $4,130, a 23.4% increase.

The average claim in Rhode Island is 26.0% higher than in neighboring states.

Rising claim costs may ultimately impact consumers' wallets in the form of higher insurance premiums. Rhode Island has the second highest average property damage liability premiums and the fourth highest average collision premiums in the nation.

Estimated Impact of Legislation Banning Aftermarket Parts Use on Rhode Island Personal Auto Insurance Premiums

PCI's research brief also estimates the impact of House Bill 8013 and Senate Bill 2679, which would effectively ban the use of high quality, reliable aftermarket parts (AMP) and force consumers to use higher priced original equipment manufacturer' parts (OEM). On average, AMPs are 23.3% to 29.9% cheaper than OEM parts.

Aftermarket parts provide a $1.5 billion benefit to consumers. If insurers are prohibited from using AMPs, repair costs will go up and could lead to higher premiums.

PCI estimates this could drive the cost of repair parts up by 10.8% and overall repair costs by 5.2%. This in turn could drive premium increases, resulting in Rhode Island drivers paying the highest property damage liability premiums in the country, and the second highest collision premiums in the country.

Libby - $22.66/share

Malta - Team 4 - $22.15/share

Poplar - Team 14 - $20.55/share

Heritage Christian - Team 7 - $10/share

The High School Business Challenge would like to the thank the instructors who led their teams in the Challenge Bowl this year which included: Wayne Tofslie, Jeremy Anderson, Kurt Wohler, Russell Biniek, Shawn Bleth, Levi Osborne, Robert Hay, Michelle Foss, Shawn Bleth and Robert Hay. Business Advisers for the day included: Margit Baake, Montana Sen. Jeff Welborn, Webb Brown, Dan Brunell, Anne Booth, George Mercer, and Montana Rep. Vince Ricci.

The High School Business Challenge fulfills a core objective of Envision 2026 , the 10-year strategic plan of the Montana Chamber - namely youth entrepreneurship. The HSBC is administered by the Montana Council on Economic Education and scholarships are coordinated by Reach Higher Montana.

[Category: Business]