Ontario's auto recyclers and insurers have identified six critical system disconnects—including terminology differences, parts grading inconsistencies, and poor communication—that prevent recycled OEM parts from appearing on collision repair estimates, prompting industry collaboration to improve processes and increase confidence in sourced recycled components.
- Six key disconnects identified: terminology differences, parts grading, documentation, data feeds, bodyshop expectations, and how estimators evaluate recycled parts
- Communication breakdown: Recyclers and insurers lacked understanding of each other's processes, causing parts to be rejected or excluded from estimates
- Quality control improvements: Pilot programs with Intact Insurance showed that tighter quality processes and better photographs and damage descriptions increase recycled parts acceptance
- Gold Seal 2.0 certification: New professional auto recycler program will include warranties, service standards, and complaint resolution to build insurer and bodyshop confidence
- Industry commitment: OARA's Insurance Working Group continues collaborative discussions to develop practical solutions for sustainable recycled OEM parts usage
Representatives from Ontario’s auto recycling and insurance sectors have identified six points where differences between their systems can prevent recycled OEM parts from appearing on collision repair estimates.
The findings came from the first meeting of the Ontario Automotive Recyclers Association’s Insurance Working Group.
Participants identified differences in terminology, parts grading, documentation, data feeds, bodyshop expectations and the way estimators consider recycled parts.
Wally Dingman, executive director of OARA and the Automotive Recyclers of Canada, said recyclers and insurers entered the meeting without fully understanding each other’s processes.
“Our first discussion with insurers revealed several disconnects that neither side fully understood,” Dingman said.
A recycler begins the process by recording a part’s condition, damage and donor-vehicle information. A data provider then sends some or all of that information to an estimating or parts-procurement system.
An estimator may not see the part if the systems use different names for it. The estimator may also receive a grade or damage code without enough information to understand the part’s condition.
Different expectations can cause further problems after the bodyshop places the order. A recycler may consider a part suitable if it requires minor preparation. A bodyshop may expect the same part to arrive ready for refinishing and installation. If the recycler does not provide clear photographs and damage descriptions, the bodyshop may reject or return the part.
OARA representatives began examining these problems during a stakeholder roundtable at the 2025 OARA Convention in Niagara Falls, Ont. About 90 recyclers, insurers, bodyshop representatives, suppliers and vehicle manufacturers attended.
Bodyshop representatives identified unclear parts descriptions and damage codes as two leading concerns.
“We came out of the roundtable with a desire to make things better, to get more recycled parts on estimates,” OARA chair Greg Woodbeck said following the event.
Representatives from the recycling, insurance and supplier sectors met again at the 2026 OARA Convention in Markham, Ont., on March 26. Participants discussed accreditation, repair standards and ways to increase the use of recycled OEM parts.
OARA representatives created the Insurance Working Group after those discussions. The date, location and participants at its first meeting have not been made public.
An earlier Intact Insurance pilot provides an example of the changes under consideration.
Employees at Thorold Auto Solutions and Miller’s Auto Recycling reviewed how recycled parts were inspected, photographed, described, prepared and delivered for collision repairs.
Both recyclers tightened their quality-control processes following the pilot. Employees placed greater emphasis on photographs, damage descriptions and communication with bodyshops before shipping a part.
Thorold Auto Solutions hosted Intact representatives for another discussion about recycled parts in June 2026. OARA representatives have not confirmed whether Intact is participating in the Insurance Working Group.
The discussions may also help set requirements for Gold Seal 2.0, an updated certification program for professional auto recyclers.
The proposed requirements include warranties, service standards, performance measurements and procedures for resolving complaints. Insurers and bodyshops could use the certification to identify recyclers that follow those requirements.
Dingman said participants are not trying to place recycled components in every repair.
“The objective is not to assign blame or advocate for recycled-parts use at any cost,” he said. “It is to identify practical obstacles, improve communication and develop solutions that give repairers and insurers greater confidence in sourcing and using quality recycled OEM parts.”
Participants have agreed to continue the discussions. No date has been released for the next meeting.
