OEM Parts vs. Aftermarket Parts: Will your Auto Insurance Pay for Brand New Repair Parts from the Original Equipment Manufacturer?

If you haven’t had an auto accident, (first, count your blessings), and second, contemplate this: If your car needs to be repaired, a standard auto insurance policy calls for repairs that use "like kind and quality" or "functionally equivalent" parts. These are commonly called aftermarket crash parts.  They are not manufactured by the manufacturer of your vehicle and they generally cost less than Original Equipment Manufacturer (OEM) parts, which are brand new.  If you want replacement parts from your original car manufacturer, choose an insurance policy that guarantees OEM parts. Read your policy carefully and ask your agent before you have a claim.

Some policies will allow for OEM parts, but only if you share in the cost.  Here is why insurance companies prefer aftermarket parts, and if you do not have collision coverage and you have to pay for your repairs out of pocket, you might develop a preference for them, as well:

• Less Expensive - Aftermarket parts are usually less expensive than OEM parts; how much you save varies by brand. Shop around to find the best price and to get an idea of how much that part usually costs. Do ask about the quality of the part.
• More variety - There are hundreds of companies that make aftermarket parts. Some specialize in specific parts, and other companies make almost any part you can think of. More variety means greater selection and a wider range of prices.
• Quality can be as good as or even better than OEM – Sometimes, you may end up with a better part than you started with.  Often, the aftermarket companies reverse-engineer the part, so they can work the weaknesses out. 
• Better availability - You can walk into any gas station, auto parts store or local mechanic, and they are bound to have a part that fits your car. This gives you more options on where to take your car for service.

What’s the down side of aftermarket parts?

• Quality does vary – Although the quality of aftermarket parts can be as good as OEM parts, some are inferior because lower quality materials are used.  It is best to stick with aftermarket brands you're familiar with or that are recommended by a mechanic you trust, even if these parts cost a bit more.
• Selection a bit overwhelming - If you are not familiar with aftermarket brands, the selection could be overwhelming, and there's some chance you will get a bad quality part. Even a part as simple as a spark plug can be made by dozens of different companies and comes in numerous variations. Consult your mechanic for advice or simply stick with the OEM part when the price difference isn't significant.
• No warranty - Some aftermarket parts are sold without a warranty to keep costs down.  It is best to stay away from those.

If aftermarket parts are generally okay, when and why would you want OEM parts?

• Easier to find the exact part you need  - Your dealer will have one OEM part that fits the bill.  There’s no shopping around for different brands.
• You don’t have to worry about the quality - The OEM part is what the vehicle was manufactured with and provides peace of mind in its performance. It should work exactly as the one you are replacing.
• Warranty - Most dealers back up their OEM parts with a one-year warranty. And if you get your car repaired at the dealer, they'll usually stand by their labor as well.

Why wouldn’t you want them?

• More expensive: Sometimes much more expensive.  They tend to cost about 60% more than aftermarket parts according to the Property and Casualty Insurers Association of America (PCI)
• Limited choices for purchasing: Even though there are some other ways of buying OEM parts, such as eBay, and online wholesalers, most people just go to their local dealership because it is the fastest way to obtain the part.  Dealers have an even higher markup on the part than other sources do.
• Quality may not be superior: You pay the extra money for an OEM part assuming it would be vastly superior to an aftermarket part, but that is not always the case.  Sometimes you are paying extra just for the name.  So the extra cost may not be worth it.

If, after reading the pros and cons, you decide you prefer OEM parts, do you have the right to request them? If your policy doesn't guarantee OEM parts, you do have the right to request them, but, again, you could be asked to share the repair cost.  Weigh the options and determine for yourself which is the best way to go, and let your claims adjuster know.