My Insurance Company Insists On Using Parts That Are Not New Original Parts In The Repairs! What Can I Do?

Many insurance companies want the car repairs to include the use of used parts or parts not made by the original carmaker. If your insurer wants to do this for your car repairs, it’s important to understand what this could mean for your car and what can be done about it.

In the auto body repair business, three types of replacement parts are used:

1. OEM parts, or parts made by the original equipment manufacturer. These are the same parts used on the assembly lines that built your car in the first place. As their quality and fit are the same as what was on your car prior to the loss, very few body shops or customers have concerns about their use.

2. Used (or salvage) parts. These are parts pulled off of other salvaged vehicles similar to your own. These parts can be very attractive as they are still “OEM”. Their use is considered “green” as they involve recycling previously used parts. Issues can arise if they have prior damage issues (rust or dents, for example) that may need to be repaired prior to using them on your vehicle.

3. Parts made by manufacturers other than the OEM, often called aftermarket parts. Aftermarket parts are new parts made to replicate OEM parts. The insurance industry as a whole has fought to include the use of aftermarket parts in repairs as an effective means to control rapidly escalating OEM parts prices.

These parts can come from a variety of sources, either domestically or imported. Many body shops are hesitant to use aftermarket parts due to concerns about part quality. They also may take more effort to order, take longer to be delivered, and they may not provide as much profit as OEM parts do.

It is important to understand when confronted with this issue, what the insurer’s obligations to you are. Essentially, the need to offer to pay a fair price to restore your car to the condition it was in just prior to the loss. With this in mind, think about what condition your car was actually in. Was there pre-existing damage to some of the parts already (such as dings, scratches, or rust)? If so, the insurer may have a reasonable case to use the cheaper aftermarket or used parts.

Also, consider that many parts on your vehicle may already be aftermarket. Examples are batteries, tires, stereos, and shock absorbers. Few people object to the use of these parts or are concerned about how they will impact the vehicle’s warrantee or operation. Similarly, many parts used in repairs may offer a reasonable solution and save on the overall repair costs. The main point is to make sure that the parts are fully warranted for as long as your own the vehicle and that they do not affect in any way the appearance, condition, or safe operation of the vehicle, after the repair. If you are comfortable with the use of aftermarket or previously used parts in the repairs, you still should make sure that the body shop fully inspects the parts for quality and fit, prior to their use.

Here are some tips on what to do if the insurer insist on paying only for the cost of aftermarket or used parts that you do not want on your car:

• Discuss the specific parts with the repair shop. What is their experience with these parts? The body shop may have some poor experiences with a particular aftermarket part brand. Use this information to help you in your discussions with the insurer.

• Review the parts being used on the estimate. Perhaps some of the parts are acceptable and some not. Offer to compromise with the insurer by accepting some if they agree to remove others.

• Be careful if your refusal to allow aftermarket or used parts in the repairs is causing delays, particularly if you are in a rental paid for by the insurer. They may refuse to pay for rental charges caused by what they feel are unnecessary delays. You may want to consider paying the cost difference. This will keep your rental costs lower if necessary. On the other hand, make sure the use of the parts will not delay the repairs and cause you inconvenience. If they do, this would be a powerful argument to make with your insurer against their use.

• Make sure that any aftermarket parts have a warrantee that at least exceeds whatever warrantee you have on your vehicle at the time. Most insurers will warrantee the parts for as long as you own the vehicle. Make sure yours does. Do not be concerned that the use of the parts will void any vehicle warrantee you currently have. Your vehicle warrantee is not affected, except to the actual parts that have been replaced.

• You can “shop” insurers as to who pays for the repairs. If you were not at fault in an accident and have the choice as to who pays for the repairs, either your insurer or the other parties insurer. Many insurers will not use aftermarket parts in their repair estimates. If one of these insurers does not, have them handle your repairs.

• If you used your own insurance for the repairs, and are adamantly opposed to the use of used or aftermarket parts in the repairs, review your policy contract for any clause that addresses dispute in the amount of damages. These clauses are universal in auto policies and are usually called “appraisal clauses”. The process normally requires you to hire your own appraiser to establish a fair amount for the damages. This person will then work with the insurer’s appraiser to resolve the amount. If needed, a third, independent appraiser is brought in to decide the matter.  You will have to pay for your own costs here, so make sure it makes economic sense to you, prior to pursuing this route. Simply invoking this clause in writing to the insurer, though, may prompt a resolution.

• If you used the “at fault” party’s insurer, you can elect to pay the cost difference and then pursue the additional costs through small claims court, arguing that the payment made did not restore your car to its pre-loss condition. Again, you’ll want to make sure this makes economic sense, prior to pursuing this option.

The use of “alternative” parts in vehicle repairs is a big part of insurers efforts to control repairs costs. This in turn has helped keep everyone’s insurance premiums lower than they otherwise would have been. Many times, they are a good solution for a vehicle’s repair. Sometimes, though, they can also cause repair problems and delays. The important thing is that your vehicle is repaired correctly and timely and that the use of alternative parts does not come in the way of this goal. By considering the tips outlined here, and evaluating what is right for your car repairs, you will have much greater confidence in the repairs to your vehicle.