• How Aftermarket Parts Differ from Car Insurance Policies and OEM

    In today’s automobile industry the aftermarket parts play a vital role, but how is this related to car insurance policies? In USA alone it is a $257 billion enterprise which covers servicing and customization of the vehicles. Car insurance policies specify on the usage of aftermarket parts to repair damaged vehicles. The crux of the matter lies in considerably lower repair bills for the insurance companies.

    OEM Parts

    These are the parts manufactured either directly by the vehicle manufacturer themselves or by one of the suppliers that are used to produce the new vehicle. These parts are premium products and demand premium prices too. The OEM parts manufacturers claim that when vehicles are repaired using OEM parts, they are as good as the new vehicles.

    Aftermarket Parts

    The aftermarket parts; a term referred to the parts manufactured by third parties which are claimed to be of the same specifications as the OEM parts but they command considerably lower rates. The price difference initiates the insurance companies incline towards the aftermarket parts as the replacement parts. The usage of aftermarket parts ensure that the repairing cost of the vehicles goes down and the insurance company has to shell out lesser amounts to settle the repair charges. The manufacturers of aftermarket parts claim that the quality and specifications are just the same as OEM, though this claim is refuted by many a garage workers, especially the body repairing and paint shop workers.

    OEM vs. Aftermarket

    On the other hand the OEM parts manufactures claim that the usage of parts manufactured by them ensure that the repaired vehicle will be as good as the new, even if it means a considerably higher repair bill. Many people have issues regarding usage of aftermarket parts to repair damaged cars. Majority of states have laws allowing insurance companies to specify usage of aftermarket parts over OEM parts for repairs, while many states allow the customer to pay for the differential cost of using OEM parts for repairs. In recent past the aftermarket parts were made in substandard plants, more often they were referred as Chinese replacement parts. However the aftermarket parts manufacturers now claim to have superior plants and some of these parts have been found to be better lasting than the OEM parts. 


    Some states like New Hampshire have strict laws pertaining to usage of OEM parts for repairs of vehicles. In vehicles where the odometers read less than 30,000 miles or where the age of the vehicle’s age is less than 2 years, the insurance companies are supposed to pay for the usage of OEM parts for repairs of damaged vehicles. By far the strictest laws regarding usage of OEM parts; is in place in West Virginia. The law stipulates that car insurance terms include; only OEM parts have to be used for repairs of damaged vehicles aged less than 3 years. The only scope for usage of aftermarket parts for repair of damaged vehicles is when the owner agrees in writing for the aftermarket parts to be used for repairing his/her vehicle.

    This is how aftermarket parts and their prices differ from OEM  and insurance.