Auto Part Replacement: Insurers' Certified Options

When a car needs to be repaired, the insurance policy will dictate the type of replacement parts that are covered. The type of parts used can be original equipment manufacturer (OEM) parts, aftermarket parts, or recycled parts. OEM parts are made by the car's original manufacturer and are identical to the parts that were already on the vehicle. Aftermarket parts are made by third-party manufacturers and are designed to be as identical as possible to the original parts. Recycled parts are used parts taken from other vehicles. Insurance companies often opt for aftermarket parts to save money, as they can be up to 50% cheaper than OEM parts. However, some drivers prefer OEM parts as they are guaranteed to fit their vehicle perfectly. Some insurance companies offer OEM parts coverage, but it may come at an additional cost.

Original Equipment Manufacturer (OEM) parts are made by the vehicle's original manufacturer

When it comes to car repairs, it's important to know that not all replacement parts are the same. Original Equipment Manufacturer (OEM) parts are made by the vehicle's original manufacturer. This means that if you need a new headlamp for your Toyota Corolla, an OEM part would come directly from Toyota, rather than a third-party aftermarket manufacturer.

OEM parts are designed to be identical to the parts that were originally installed in your vehicle during its assembly. They are often marketed by another manufacturer, who purchases the parts from the OEM and assembles them into their finished products. In the automotive context, this means that car dealers purchase OEM parts and assemble them into completed cars, which are then sold to consumers.

While OEM parts are generally considered to be of higher quality than aftermarket parts, this is not always the case. Some aftermarket parts are manufactured to be equal or superior to their OEM counterparts. Aftermarket parts are also usually more affordable than OEM parts, which can help keep repair costs down.

It's worth noting that your auto insurance policy may not cover the full cost of OEM parts. An OEM part is typically more expensive than its aftermarket equivalent, so you may need to pay the difference out of pocket. To ensure that only OEM parts are used in repairs, you may need to purchase an OEM endorsement, which is an additional feature on your car insurance policy.

When deciding whether to opt for OEM or aftermarket parts, it's important to review your insurance policy carefully and consider the specific needs and requirements of your vehicle.

Aftermarket parts are made by third-party manufacturers and can be used for repairs or modifications

Aftermarket parts are often used by insurance companies to save money and keep costs down. This can result in lower premiums for policyholders. However, the quality of aftermarket parts can vary, and they may not always measure up to the original equipment manufacturer (OEM) parts. Some aftermarket parts may be better than OEM parts, as some companies reverse-engineer their generic parts to improve upon the original design.

It is important to note that repair shops in many states, such as California, Nevada, and Utah, are legally required to inform customers about the types of parts that will be used before any work begins. Additionally, some states have laws that dictate that aftermarket parts can only be used if they are of equal quality to the original parts.

If you are concerned about the quality of aftermarket parts, you can request that your repair facility use OEM parts. However, keep in mind that your auto insurance policy may not cover the full cost of OEM parts, as they are usually pricier than aftermarket parts.

Aftermarket parts are generally cheaper than OEM parts, which can help keep insurance premiums low

The use of aftermarket parts can be a contentious issue, with some people believing that they are of lower quality than OEM parts. However, this is not always the case, and there are several advantages to using aftermarket parts. Firstly, they are significantly cheaper than OEM parts, often costing up to 50% less. This can result in substantial savings for car owners, as well as lower insurance premiums. Secondly, aftermarket parts are often more readily available than OEM parts, making it more convenient and quicker to get repairs done.

In terms of quality, it is important to note that aftermarket parts are not used parts; they are new and simply a generic version of OEM parts. While some aftermarket parts may not be of the same kind or quality as OEM parts, there are also many aftermarket parts that are of equal or even better quality. The key factor in determining the quality of aftermarket parts is the manufacturer. Reputable manufacturers, such as those with CAPA (Certified Automotive Part Association) certification, produce aftermarket parts that are safe and of good quality. CAPA-certified parts have undergone rigorous testing to ensure they are equivalent to new OEM parts in terms of appearance, fit, material composition, and mechanical properties.

When it comes to insurance, most insurance companies include the use of aftermarket parts in estimates for repairs. This is because aftermarket parts can help keep repair costs down, which results in lower premiums for policyholders. However, it is worth noting that not all states have laws addressing an insurance company's obligations to use OEM parts, and the regulations can vary. As of 2017, 31 states required insurers to disclose the use of aftermarket parts in repair estimates, while only 13 states required aftermarket parts to be of like kind and quality as OEM parts. Therefore, it is important for vehicle owners to be aware of the regulations in their state and to carefully review their insurance policy to understand what type of parts are covered.

Recycled parts are used parts from other vehicles, which are ideal for older vehicles with hard-to-find parts

When it comes to auto repairs, not all replacement parts are created equal. There are three main types of replacement parts: original equipment manufacturer (OEM) parts, aftermarket parts, and recycled parts. While OEM parts are made by the car's original manufacturer, and aftermarket parts are produced by third-party manufacturers, recycled parts are used parts from other vehicles.

Recycled parts are ideal for older vehicles with hard-to-find parts. When a car is damaged beyond repair, salvage yards or auto recyclers carefully remove, inspect, and inventory undamaged parts for sale. These parts are often from newer vehicles, with low mileage, and are thoroughly cleaned and tested to ensure they are still functional. Recycled parts are a cost-effective option, as they are typically cheaper than new OEM or aftermarket parts.

Additionally, recycled parts are environmentally conscious. By reusing parts from other vehicles, auto recyclers help reduce the demand for new parts, conserving natural and non-renewable resources. Almost every new car contains about 25% recycled material from old vehicles, and automotive recycling is the 16th-largest industry in the United States.

When it comes to insurance coverage, policies may cover recycled parts, depending on the specifics of your plan. It's important to review your insurance policy to understand what type of replacement parts are covered. In some cases, you may need to purchase additional coverage to ensure access to recycled parts.

Using recycled parts for older vehicles can be a practical and economical choice, providing the necessary components for repairs while also reducing the environmental impact of automotive maintenance.

The Certified Automotive Parts Association (CAPA) certifies the quality of aftermarket parts

The Certified Automotive Parts Association (CAPA) is a non-profit certification organisation that was established in 1987 to develop and oversee a testing program for aftermarket automotive parts. Aftermarket parts are replacement parts made by any manufacturer that isn't the vehicle's original manufacturer. They can be used for repairs or to modify a vehicle's performance or appearance.

CAPA was created by automobile insurance companies to control the market on parts used by insurance company-contracted collision shops. It gave the insurance companies an alternative to high-priced original equipment manufacturer (OEM) parts. CAPA encourages competition in the marketplace in the hope that their program will ultimately reduce expenses for the consumer and the industry while increasing and assuring part quality.

CAPA-certified parts are subject to a comprehensive range of tests to ensure every aspect of the aftermarket part, including materials, fitment, appearance, and durability, are directly compared to and can equal, if not surpass, the OEM part. The quality standards apply to various types of parts made from different materials, and CAPA is constantly expanding its certification program to include more parts and new materials.

Your local auto body shop can get CAPA-certified parts, but they are not required to do so. If CAPA certification matters to you, ask the shop about it. Online stores may also carry CAPA-certified parts.

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