Types of Car Parts Used in Insurance Claims: An Overview

Types of Car Parts Used in Insurance Claims: An Overview

While buying auto insurance, you must know whether your insurance covers OEM or aftermarket car parts. Most insurance providers include aftermarket parts instead of OEM in the policy as a cost-cutting measure. To ensure that only OEM parts are used for your car’s repair, you must request them at the time of purchase, as most standard policies do not cover OEM parts.

Does Your Insurance Cover Aftermarket Parts?

Many times it’s up to the repair shop to determine replacement parts for a vehicle. Even though vehicle owners often favor parts made by the manufacturer, not all standard auto insurance policies provide coverage for replacement parts. Find out if your insurer offers optional coverage for these parts, whether they come from your car’s manufacturer or an OEM.

However, OEM parts for older vehicles may not be available anymore, and for such vehicles, aftermarket parts are the only option, regardless of whether they are covered or not. Even if your auto insurance policy doesn’t cover OEM parts, you can add them as endorsements for added coverage, or you may pay the difference in the OEM and aftermarket cost from your pocket.

What Does OEM Refer to?

OEM refers to Original Equipment Manufacturer. These are parts manufactured by automobile companies for their car models. They are made to the exact dimensions of the originally installed parts.
If you take your car to your brand dealer for repair, you can rest assured that only OEM parts will be used. However, if you go to a generic auto repair shop, they will use an aftermarket part that might not be an exact fit.

State Insurance Codes for OEM Parts

Each state has its own insurance code regarding OEM parts. Some states have made it compulsory for insurers to provide OEM parts coverage for all new cars, while in others, only those new cars that are less than two years or have not exceeded 30,000 miles in mileage qualify. Each state has varying guidelines for OEM and aftermarket parts, so you must know your state regulations. A typical insurance company requirement for OEM parts is that they are for models less than seven years old.

How Can You Guarantee OEM Parts for Your Car?

If the company states it will only pay for non-OEM parts, you can still get the work done and pay the difference or buy an OEM endorsement. The reasons mechanics prefer OEM parts are that they will more likely fit without adjustments, and the parts cost more, leading to higher revenue.

Aftermarket parts can be just as effective as OEM parts, even though they may require adjusting, but the quality of these parts varies from company to company. However, if you insist on OEM parts, be prepared to pay a higher price. When purchasing a used automobile, ensure you find out from the owner or a mechanic if it contains OEM or aftermarket parts.

For more information on the coverage of OEM parts in your auto insurance, contact us at CAV Insurance Agency today.