When you need to fix a damaged vehicle, the body shops offer you different types of parts. Depending on the insurance company and the policy, you get paid for such parts. So, let’s look at various car parts and the reason why insurance companies like them or not.
OEM parts are nothing but original equipment designed by the car’s manufacturer. These are never used earlier and can be fixed right inside the vehicle. Quite often, these are much more expensive than other options. Since body shops never keep OEM parts, you have to procure them directly from the manufacturer or go through an OEM parts catalog.
Body shops love such parts because no adjustments have to be done when they can fit perfectly. On the other hand, in case other parts aren’t available, the insurance company pays for the cost of OEM parts. But, you would have to pay extra if you have requested an OEM endorsement.
Aftermarket parts are made by the company other than the manufacturer. Just like OEM parts, these are brand new and have never been used in another vehicle. However, slight adjustments need to be done once you plan to fix such kind of parts. You may face trouble but you would be able to do the job well.
Insurance companies prefer aftermarket parts because they are relatively cheap and that’s what lowers down the cost of claims. If aftermarket parts were never used, then OEM parts would increase insurance rates. Many car owners would feel that they are paying more than it’s required. Typically, policies assure you with coverage for aftermarket parts.
Used parts are usually used by some vehicle or the other. These are present at junkyards and are resold when it’s time to repair vehicles. Normally, the best thing is that used parts are OEM parts. While these are cheap, one may spend the entire day to find the best component. Another advantage is that used parts are recycled at junkyards. These fit in the right position and work as if they are brand new.
As mentioned earlier, since used parts fit within the budget, insurance companies are always happy to cover up costs. Not just that, it also helps firms to save a good amount of money. But, as a vehicle owner, you should check for quality and whether there would be conflicts with the warranty.
In most cases, vehicles are repaired with aftermarket or used components in an insurance claim. This is a common scenario with many insurance firms. If used parts can be a problem, then request OEM parts.
Consult an insurance agent immediately to know more about OEM part endorsement. Do speak with your friends well in advance to check the reputation of the company. Decide only when you have compared policies of different insurance companies.