Presented By: Brooks Kochvar Project Manager: Brad Wing GS Strategy Group 350 N. Ninth Street, Suite 550 Boise, ID (208) AFTERMARKET PARTS Conducted: January 27-29, 2015 N= 1,000 Likely Voters, Nationwide Margin of Error: +/- 3.10% Focus Groups: February 5, 2015 – Providence, RI February 18, 2015 – Indianapolis, IN

GS Strategy Group 2 Please tell me whether you have a favorable or unfavorable opinion of: IMAGE RATINGS Auto Ins. Co’s Overall AreaPartyBody ShopsIns. Cost NortheastMidwestSouthWestDemIndyGOPFavUnfavToo HighAbout Right Favorable Unfavorable Net Favorable Auto Ins. Co’s Overall Filed a Claim? Satisfaction w/ Insurance Claims Process IncomeAgeGender YesNoEx/VeryS’whatNot< $60k$60k+<4545+MF Favorable Unfavorable Net Favorable Very 17.1 S’w 42.4 Very 17.6 S’w 38.0 Very 43.2 S’w 33.8

GS Strategy Group 3 THE CLAIMS PROCESS If you needed to have your vehicle repaired after an accident, which of the following would be most important to you: 1.The time it takes to make the repairs 2.The cost of the repairs 3.The quality of the repair work OverallIndyProvidence Quality of Repairs Cost of Repairs Time it Takes to Repair In general, how satisfied would you say you have been with the insurance claims process – extremely, very, somewhat or not at all satisfied. Asked only of “Yes” respondents. Have you ever been in a vehicle accident in which you had to file an insurance claim? Extremely 22.0 Very 33.8

GS Strategy Group 4 Aftermarket parts are parts for vehicles that do not originate from the vehicle’s manufacturer – essentially generic parts that perform the exact same function as the original manufactured part. Knowing this, if you were in an accident would you favor or oppose the use of aftermarket parts in your vehicle’s repair? AFTERMARKET PARTS Overall Body ShopsAuto Ins. Co’sFiled a Claim?Same QualityAgeGender FavUnfavFavUnfavYesNoAgreeDisagree<4545+MF Favor Oppose Net Favor Now to another topic. To the best of your knowledge, when it comes to the prices body shops charge for repairs, what is the single largest expense? Overall Cost for Labor67.3 Cost for Parts15.0 Body Shop Overhead10.5

GS Strategy Group 5 Agree/Disagree: Aftermarket parts are just as safe as parts made by your vehicle’s manufacturer. AFTERMARKET PARTS Agree/Disagree: Aftermarket parts are the same quality as parts made by your vehicle’s manufacturer. Agree/Disagree: Aftermarket parts cost less than parts made by your vehicle’s manufacturer. Strongly 49.6 S’what 36.2 Strongly 16.1 S’what 33.0 Strongly 12.2 S’what 27.2

GS Strategy Group 6 Which of the following comes closest to your own opinion? 1.The use of aftermarket parts whenever possible in collision repair is a good thing because these parts are a cost-effective alternative that help keep repair costs lower, saving customers on their insurance rates 2.The use of aftermarket parts whenever possible in collision repair is a bad thing because they are less safe, lower-quality and insurance companies are only trying to protect their bottom line AFTERMARKET PARTS

GS Strategy Group 7 AFTERMARKET PARTS: MESSAGING If you knew each of the following statements were true, would you be more likely or less likely to favor the use of aftermarket parts if your vehicle was being repaired after an accident? The use of aftermarket parts in repairs saves money, which means consumers pay lower premiums and deductibles. If you only used original manufacturer parts, the costs for repairs would skyrocket. Often times, aftermarket parts are more reliable and higher quality than original manufacturer parts, increasing the longevity of the part. The use of original manufacturer parts ensures your vehicle is fitted with the proper parts specifically designed for it. This ensures the safety and longevity of the vehicle.

GS Strategy Group 8 Anderson Cooper 360° Report ANDERSON COOPER

GS Strategy Group 9 FOCUS GROUPS: THE AFTERMARKET PART DEBATE “Part will come from a junkyard and sometimes they work.” Male, Indy “Lower cost and essentially do exactly what is needed.” Female, Indy “The cost would be cheaper with the same outcome.” Female, Providence “Possibility of not working as well or as long because they don’t meet specs.” Male, Indy

GS Strategy Group 10 “…if it was me and the insurance company is paying for it, I would want the original parts. If I am paying for it, it is my call…” If I am paying for insurance month in and month out, I expect to have the best parts on there because I am paying for it. THE AFTERMARKET PART DEBATE: DEPENDENT ON WHO PAYS

GS Strategy Group 11 KEY FINDINGS GS Strategy Group 11 Nationally, both auto insurance companies and auto body shops have similarly strong favorable images, but auto insurance companies have more people with an unfavorable opinion of them. However, people are very favorable of their own insurance companies, with 80% of respondents having a favorable opinion of them. Voters are familiar with aftermarket parts and they are split on whether they should be used in repairs. Concerns over quality is lead concern about the use of aftermarket parts. If participants were paying for their own vehicle repairs, they would choose aftermarket parts because of the lower cost. However, when they know the insurance company is paying for repairs they believe OEM parts should be used. Communicating the cost savings and while maintaining quality and safety are crucial to building increased support for use of aftermarket parts.