OEM versus Aftermarket Parts

Knowing Your Rights When Repairing Your Vehicle

After a car accident, getting your vehicle repairs shouldn’t be a hassle. However, many people are unaware that their insurance policy contains some fine print that might just make the process a bit stressful.

When your auto insurance pays to fix your vehicle, the goal is to return your vehicle to its pre-accident condition. What that condition actually constitutes can be up for debate. As a cost-cutting measure, many insurance companies will opt to use what is known as aftermarket parts, or non-original equipment manufacturer parts, to repair your vehicle. So, what does this mean to you?

What are OEM parts?

Original equipment manufacturer parts, or OEM parts, are essentially automotive parts that have been made by the vehicle’s manufacturer. Honda OEM parts are made by Honda. Toyota OEM parts come from Toyota. Many contend that the use of OEM parts when repairing a vehicle helps preserve the vehicle’s resale value and level of safety.

What are aftermarket parts?

Aftermarket parts, or non-OEM parts, are made by third-party vendors. Use of aftermarket parts, which the insurance industry considers to be reasonable alternatives to OEM parts, can help keep the costs of repair low.

What can my insurer require?

Most insurance policy coverage requires that repairs are made with “certified” parts or parts of “like kind or quality.” This terminology can be used by the insurance company to cover the use of non-OEM parts.

It is important to note that not all insurance companies rely on non-OEM parts for its customers; however, those insurance policies typically come with higher premiums in order to cover the cost of OEM parts versus less-expensive aftermarket parts.

Is there anything I can do if I want to use OEM parts?

When repairing your vehicle, you have the right to demand the use of OEM parts only. However, chances are, you will end up paying the difference between the two options.

For some car owners, the extra cost is worth it. For example, a Mercedes or a BMW are known for their automotive craftsmanship. Therefore, a BMW owner might want to pay the added cost to use OEM parts in order to maintain that level of quality.

If you are leasing your vehicle, the leasing company requires that the car or truck be returned in the same condition as when the lease was initiated. This caveat often means that leasing companies will require the use of OEM parts to repair the vehicle, regardless of the driver’s insurance policy.

There have been some class-action lawsuits against insurance companies in which non-OEM parts were required, but with all legal issues, lawsuits take time. On a positive note, these lawsuits have caused many insurance companies to take a closer look at their policies, opening up the possibility of requesting the use of OEM parts. Additionally, some companies have started to partner with various manufacturers in order to purchase OEM parts at a discount, enabling them to offer OEM parts without increasing their customers’ premiums.

Ultimately, if you are concerned about the use of OEM parts to repair your vehicle, the best step you can take is to read your policy carefully – including the small print. Additionally, you need to ask your insurer what their OEM policy is prior to repairing your vehicle because many states do not require insurance companies to inform their customers of the use of non-OEM parts.