Auto Insurance: OEM vs. Aftermarket Parts in Auto Insurance Claims

When it comes to auto insurance claims, many drivers are surprised to learn they may have options regarding the parts used in their vehicle repairs. Understanding the difference between OEM original equipment manufacturer (OEM) and aftermarket parts can help you make informed decisions if you need to file a claim.

What Are OEM and Aftermarket Parts?

OEM parts are made by your vehicle’s original manufacturer and are designed to match the exact specifications of your car. Aftermarket parts, on the other hand, are produced by third-party companies and may fit a range of makes and models. While both types of parts are used in auto repairs, they can differ in quality, price and warranty. How your insurance applies may also vary.

How Do These Choices Affect Costs and Claims?

Insurance companies may specify whether repairs use OEM or aftermarket parts. Consider the following:

• OEM parts are typically more expensive but are designed to restore your vehicle to its original condition. Some vehicle owners prefer OEM parts for various reasons, such as their fit and manufacturer-backed warranties.
• Aftermarket parts are often less costly and more readily available. Although quality can vary, many reputable aftermarket parts meet industry standards and can serve as suitable replacements.

Your policy may outline which parts are covered for repairs. Some insurers default to aftermarket parts unless you request OEM parts and pay the difference. It’s important to review your coverage and discuss your preferences with your insurance provider.

Understanding Your Rights and Responsibilities

Insurance companies are typically required to notify you in writing if aftermarket parts are used. You also have the right to request OEM parts, though you may be responsible for any additional costs not covered by your policy.

Making the Right Choice for Your Vehicle

If you have questions about your auto insurance coverage or want to review your policy, contact us today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.