The Fine Print: Understanding Auto Insurance And Part Replacement

Whether auto insurance covers the replacement of old parts depends on the type of insurance policy you have. Insurance policies may cover original equipment manufacturer (OEM) parts, which are new parts produced by the vehicle's manufacturer, or aftermarket parts, which are made by third-party manufacturers and can be cheaper. Some policies may also cover recycled parts, which are used parts from other vehicles. It's important to carefully review your insurance policy to understand what type of parts are covered and to know your options for negotiating with the insurance company to ensure you get the best possible repairs for your vehicle.

Original Equipment Manufacturer (OEM) parts

OEM parts are generally perceived as being of higher quality than aftermarket parts, although this is not always the case. They are certainly more expensive than third-party parts, but they are made to a more exact set of specifications.

In the context of auto insurance, your policy may or may not cover OEM parts. This will depend on the specific stipulations of your policy. If your insurance policy does not require that OEM parts are used, it is unlikely that your insurance company will cover them.

To guarantee that OEM parts are used in repairs, you would typically need to have an OEM endorsement on your policy. This is an extra feature that ensures your insurance company will choose OEM parts first when they are available.

It is worth noting that some states have laws that dictate aftermarket parts can only be used if they are shown to be of equal quality to OEM parts. Additionally, insurance companies may write repair estimates that include OEM parts depending on the make, model, and year of the vehicle, and the type of repairs needed.

Aftermarket parts

However, aftermarket parts approved by the Certified Automotive Parts Association (CAPA) are safe, suitable, and of good quality. CAPA ensures the quality of aftermarket parts by inspecting the manufacturer's facility, equipment, manufacturing processes, and products. Only then will CAPA certify the aftermarket part.

Insurance companies often include the use of aftermarket parts in repair estimates as they are cheaper than OEM parts, which helps keep repair costs and premiums low for all policyholders. However, some states have laws that require insurance companies to notify customers if they plan to use aftermarket parts and to obtain their consent before using non-OEM replacement parts.

Recycled parts

Recycled car parts, also known as used parts, are those that have been taken from other vehicles. They are a good option for those looking to save money on repairs, especially if your vehicle is older and has hard-to-find parts.

After an accident, insurance companies will often try to cut costs by using recycled parts. This can be frustrating for vehicle owners, especially if they were not at fault for the accident. However, it is important to remember that you have a duty to mitigate your damages, which means not spending more money than necessary on repairs.

If you are concerned about the quality of recycled parts, it is important to work with a repair shop that you trust and can communicate with. They can verify that any used parts are in acceptable condition and meet certain specifications. If the part does not meet specifications, the shop has the right to reject it, and the insurance company will have to try another used part or provide a new one.

In some cases, repair shops may be able to get new parts discounted to the rate of used parts, which can be a win-win for both the shop and the insurance company. However, it is important to remember that insurance companies are driven to reduce expenses, and this may include paying less for any diminished value or personal injury claims you make.

To protect yourself, it is recommended to work with a repair shop that has a good reputation for serving its customers and putting their needs first. This can help ensure that your vehicle is repaired with parts that meet the appropriate standard of quality and that your insurance company does not take advantage of you.

Economy parts

Aftermarket parts are often used by insurance companies to keep costs down, which can be reflected in the low cost of policy premiums. Insurance companies may include the use of aftermarket parts in repair estimates following an accident. This is because they can return a vehicle to its pre-loss condition and are usually cheaper than OEM parts.

If you are making a claim under your collision coverage, your insurance policy will state the type of parts your company can use. These policies often allow them to use "Like Kind and Quality" (LKQ) parts. However, you have a right to demand a safe option, such as insisting on OEM parts, especially if your vehicle is new.

If your insurance company insists on using economy parts, you could pay the difference between the non-OEM and OEM parts yourself to have the better-quality parts installed. You could then pursue a claim against the negligent driver for the difference. Alternatively, you could try to get a written warranty on the economy parts.

Aftermarket Crash Parts

Aftermarket collision parts are often used by insurance companies as a cost-saving measure. They are typically cheaper than OEM parts and can restore a vehicle to its pre-loss condition. However, they may not be made of the same material or meet the same specifications and tolerances as OEM parts, and so may not be of the same quality or have the same performance characteristics. Some states have laws that dictate that aftermarket parts can only be used if they are of equal quality to the original parts.

In some states, such as California, Colorado, and Georgia, there are laws in place that require insurers to disclose the use of aftermarket parts to the policyholder. Policyholders may also have the right to consent to the use of these parts in writing. It is important for consumers to be aware of their rights and understand the terminology of collision repair parts to ensure their vehicle is repaired properly and safely.

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