A vehicle accident is costly to all who are involved and insurance companies decide what type of replacement part is to be used on your vehicle repair. However, the insured does have a right to know what type of parts are being used on their vehicle to return the car to its former self. Your rights as a consumer regarding OEM and aftermarket repair parts may be a topic overlooked in your insurance policy until you have an accident or loss. You have a choice in the type of parts to be used in your repair but you may not be aware that using higher end parts may cost money out of your own pocket.
There are two different types of replacement parts that are available for use: OEM (original equipment manufacturer) and aftermarket parts. You as a consumer have the right to know what type of parts are going to be used in your repair. Many insurance companies will only allow OEM parts when aftermarket parts are not available, or may combine the use of OEM and aftermarket parts in a normal vehicle repair. While aftermarket parts are typically the same quality as OEM parts, their use as a repair part may be detrimental to the resale value of a vehicle, especially if it is a high value car. In some instances the availability of OEM parts may become a problem if it is a one of a kind or older vehicle. If you drive a lease vehicle you may be liable for paying a disposition fee or having part of your security deposit held back for using lower cost aftermarket repair parts.
Many insurance companies do not disclose to their consumers the use of aftermarket parts for replacement, and it is the insured’s responsibility to ask. You may be responsible for paying the difference between the price of OEM and aftermarket parts out of your own pocket in the case of an accident if you insist on using OEM parts for your vehicle. The cost can add up depending on the type of parts needed and may be the deciding factor when you are deciding between two different insurance companies.