Should Insurance Companies be Allowed to Use Aftermarket Parts in Your Vehicle?


Nov 25th, 2018

Should Insurance Companies be Allowed to Use Aftermarket Parts in Your Vehicle?

The last time your car had to undergo repairs or a change of parts, were original equipment manufacture parts used? Or were parts purchased from an unknown manufacturer? Like anyone else, you’re probably not sure. In this article, we discuss what happens when car insurance companies replace damaged parts in your car with aftermarket parts.

Are OEM parts a better choice for repairs?

You’re better off with OEM parts if your insurance is footing the bill. OEM parts are better in quality, fitting and performance than aftermarket car parts. The only hiccup with OEM parts is their longer delivery time, but it’s worth waiting to have your car repaired with original parts.

What’s wrong with using aftermarket car parts for repairs

While some aftermarket parts are tested rigorously, others aren’t. You’re taking a gamble accepting aftermarket car parts, especially when you want to file an insurance claim as you must have the parts which were on your car replaced initially with similar elements.

When are aftermarket parts right to use?

Aftermarket parts aren’t entirely useless. Some parts can provide a couple of years of reliable performance. When making a claim, your insurance rates will go up, but the low cost of aftermarket parts will keep your total claims on insurance low. Small claims translate into low insurance rates.

Why car insurance companies don’t like OEM parts

Car insurance companies can use aftermarket parts to lower costs. However, you won’t be getting the same elements that were installed on your vehicle, unless your car originally came with aftermarket car parts.

Cheap car insurance companies

Although you probably bagged a good deal on cheap car insurance, it might not be such a good thing when it comes time to file a claim. Never assume that your insurance company has to use OEM car parts. Although they may be excluded from your policy, it is possible to get endorsed for OEM parts.

Can you determine the type of parts to be used in your car repairs?

It’s your right to decide how you want your car to be repaired and the parts that will be used. Your insurance company should not dictate the type of parts you must use when fixing your vehicle, whether they’re new, used or even aftermarket. 

Loss of value in vehicle after a collision

If you’re in a car collision due to negligence by the third-party, recovery could be made from the third party or their insurance company for damages sustained by your vehicle. 

In some locations, the damage is measured by subtracting the vehicle’s worth just before the collision from the vehicle’s worth only after the crash. When determining the before and after values, repair costs are always considered. Where it is possible to repair a car economically, you can insist on having your vehicle repaired completely and appropriately repaired. You can also ask on new car parts used in the repairs rather than aftermarket parts. All the insurance company has to do is pay the difference in the before and after values. 

Nobody will pay the same price for a vehicle that has been repaired as they would for one that is not, no matter how well the car has been fixed.

To determine the real value of the vehicle after it has been repaired, the kind of car parts used in its repair needs to be considered. 

Many people believe that if aftermarket parts are used for repairs, the car no longer has the same worth as a similar car repaired using brand new car parts.

If there's a problem reaching a consensus on the price of the loss, the case may be brought to court. A jury will look at all facts to determine the amount equivalent to the difference between the car's value before and after it was involved in the accident.

Your insurance company should fix your car to its original state or better

You should not be forced to accept aftermarket parts from car insurance companies when the parts that were damaged were original. The only time that your car insurance company is allowed to categorise your car parts as “used” is if your car was not purchased brand new. In this case, your car insurance company is no longer obliged to use brand new car parts to replace the damaged part on your car.