Auto Insurance And Oem Parts: What's Covered?

Whether or not auto insurance covers OEM parts depends on the insurance company and the policy. OEM parts are those that come straight from the vehicle's original manufacturer, and they are usually more expensive than aftermarket parts. Aftermarket parts are made by third-party manufacturers and can be cheaper and sometimes even better than OEM parts. Insurance companies often prefer to use aftermarket parts to save money, and some policies may not cover OEM parts unless specifically stated. However, customers can request to use OEM parts and pay the difference in cost between aftermarket and OEM parts.

What are OEM and aftermarket parts?

When repairing your car, you will likely need to purchase replacement parts. There are two types of replacement parts: original equipment manufacturer (OEM) parts and aftermarket parts.

OEM parts are made by the car manufacturer's factory and tend to fit perfectly. They are designed specifically for your make and model. They are typically more expensive than aftermarket parts due to the dealer markup and the fact that they are designed for a specific car model. OEM parts are usually backed by a one-year warranty.

Aftermarket parts, on the other hand, are made by a third-party company, often the same factory that sold them to your car maker. They are typically cheaper than OEM parts and can be produced at a high volume to fit different types of vehicles. Aftermarket parts are safe and regulated by the Certified Automotive Parts Association (CAPA). However, they may not fit your car perfectly, and the quality can vary. Aftermarket parts sometimes come with little or no warranty.

In terms of insurance coverage, your policy will dictate the type of replacement parts that are covered. Some policies cover OEM parts, while others cover aftermarket or recycled parts. Insurance companies often opt for aftermarket parts to save money, as they are typically cheaper than OEM parts. If you prefer OEM parts, you may need to request this coverage specifically or pay an additional fee.

Are OEM parts covered by auto insurance?

Whether original equipment manufacturer (OEM) parts are covered by auto insurance depends on the specific insurance policy. While some policies may cover OEM parts, others may only cover aftermarket or recycled parts. It is important to carefully review the terms and conditions of your auto insurance policy to determine what type of parts are covered.

In general, insurance companies are more likely to include the use of aftermarket parts in repair estimates, as they are typically cheaper than OEM parts and help keep premiums low for all policyholders. Aftermarket parts are produced by third-party manufacturers and are considered generic versions of the original equipment manufacturer parts. While some people believe that aftermarket parts are inferior in quality, others argue that they can be just as good, or even better, than OEM parts. Ultimately, the quality of aftermarket parts depends on the specific manufacturer.

If having OEM parts is important to you, it is recommended to find an insurer that specifically covers them. Even if your policy does cover OEM parts, they may not be included automatically and you may need to request their use or pay an additional fee. Additionally, for older vehicles or discontinued models, OEM parts may no longer be available, leaving aftermarket or used parts as the only options.

In some cases, you may be able to come to an agreement with your insurance provider to use OEM parts, even if they are not covered by your policy. However, you may be responsible for covering the difference in cost between the aftermarket and OEM parts. It is worth noting that some states have laws regulating the use of aftermarket parts and requiring insurance companies to obtain the vehicle owner's consent before using non-OEM parts.

To summarise, while some auto insurance policies may cover OEM parts, it is not a guarantee. It is essential to carefully review your policy and understand your options to ensure you are getting the desired parts for your vehicle repairs.

How to get your insurer to cover OEM parts

If you want to ensure that your insurer covers Original Equipment Manufacturer (OEM) parts, there are a few steps you can take. Firstly, it's important to understand that car insurance policies typically cover either OEM parts, aftermarket parts, or recycled parts, depending on the specifics of your policy. Therefore, the first step is to carefully review the details of your coverage to understand the types of parts your policy covers.

If your insurance policy does not explicitly require the use of OEM parts, it is unlikely that your insurance company will cover them. In this case, you may need to consider switching to an insurer that offers OEM coverage as an option. This type of coverage gives you the choice to have your vehicle repaired with OEM parts rather than aftermarket parts following a covered loss, assuming they are available.

To guarantee that OEM parts are used in repairs, you will typically need to purchase an OEM endorsement. This is an additional feature on your car insurance policy that ensures OEM parts are prioritized when available. However, keep in mind that even with an OEM endorsement, there may be instances where OEM parts are no longer available for older vehicles or discontinued models. In such cases, the repair shop may have no choice but to use aftermarket or used parts.

If you are adamant about using OEM parts, even if they are not covered by your insurance, you have the option to pay the difference between the cost of OEM and aftermarket parts. Your insurance will cover the price of aftermarket parts, and you can choose to pay for the OEM parts yourself. This option ensures that the parts used in the repair are specific to your vehicle's make and model, but it can come with a significant cost difference, so budgeting is essential.

Lastly, when considering whether to push for OEM parts, it's worth evaluating if it's worth avoiding aftermarket parts. Aftermarket parts are held to similar quality standards as OEM parts, and some states even have laws mandating that aftermarket parts must be of equal quality. Insurance companies often use aftermarket parts to keep costs down, which can be reflected in lower policy premiums.

Aftermarket parts and safety

Aftermarket parts are replacement parts that are not made by the original equipment manufacturer. They are used to replace damaged parts in automobiles. Aftermarket parts are usually cheaper than original equipment manufacturer (OEM) parts, but this does not mean they are inferior in quality. In fact, some aftermarket parts are equal to or better than OEM parts.

The quality of aftermarket parts varies, and some consumers worry about their safety. However, auto experts say these fears are unfounded. The Certified Automobile Parts Association (CAPA) issues guidelines for aftermarket parts and is considered the gold standard for safety due to its rigorous high standards and quality testing. The National Highway Traffic Safety Administration (NHTSA) also regulates many aftermarket parts based on safety needs. It regulates equipment that is required for all new motor vehicles and can regulate any equipment that poses a safety concern.

In terms of insurance coverage, it depends on your policy. Your policy may cover OEM parts, aftermarket parts, or recycled parts. Insurance companies often opt for aftermarket parts to save money, and this can be reflected in lower policy premiums. However, if you prefer OEM parts, you may need to find an insurer that covers them or pay an additional fee.

In summary, aftermarket parts can be a safe and cost-effective option for repairing your vehicle. While quality varies, reputable aftermarket brands can provide parts that are equal to or better than OEM parts. The regulation of aftermarket parts by organisations like CAPA and NHTSA also ensures their safety.

Aftermarket parts and state laws

Aftermarket parts are replacement parts made by a third-party manufacturer, not the vehicle's original manufacturer. They are usually cheaper than original equipment manufacturer (OEM) parts and can be used to repair or modify a vehicle's performance or appearance. While some people believe that OEM parts are superior to aftermarket parts, the quality of aftermarket parts is dependent on the manufacturer, and they can sometimes be better than OEM parts.

The use of aftermarket parts is regulated differently in each state. Some states, for example, regulate how insurers estimate the cost of aftermarket parts. The National Highway Traffic Safety Administration (NHTSA) regulates many aftermarket parts based on safety needs, particularly equipment that is required on all new motor vehicles. The NHTSA can also regulate any equipment that poses a safety concern. States can enact identical equipment regulations to the NHTSA or establish their own laws and regulations in the absence of federal rules. Examples of individual state rules include those covering auxiliary lighting equipment, noise levels for exhaust and stereo systems, suspension height, and window tinting. It is the responsibility of the manufacturer to be aware of and comply with federal and state laws and regulations.

Emissions-related aftermarket parts are regulated by the U.S. Environmental Protection Agency (EPA) and various state agencies, primarily the California Air Resources Board (CARB). California has been granted the right to regulate emissions independently of the EPA by Congress. Parts and components affecting vehicle emissions are subject to anti-tampering laws and require testing and certification.

In terms of insurance, most companies include the use of aftermarket parts in repair estimates after an accident. This is because they can return a vehicle to its pre-loss condition at a lower cost than OEM parts, which helps keep premiums low for all policyholders. However, some states may regulate the inclusion of aftermarket parts in insurer estimates, and the regulations can vary significantly from state to state.

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