Your car gets dinged up in an accident and your insurance agent and company does exactly what it needs to do. Before you know it, your car looks back to normal. Yet, when you look under the hood, you might find a very different picture depending upon your policy’s inclusion of OEM parts.
If your policy covers OEM parts the insurance company will replace damaged pieces with parts from the Original Equipment Manufacturer (OEM). If the use of OEM parts is not specified in your policy, Aftermarket parts that are designed for a general category of vehicle and are usually significantly cheaper, may be used.
As a consumer, it’s important to know what your policy covers and whether it matters to you if that includes OEM parts.
OEM for Value and Preference.
Resale of a luxury car may very well be contingent on the kinds of parts used in any repairs. As well, some vehicle owners feel that the parts fit better if they come directly from the manufacturer. If your automobile is newer and more valuable, it might worth it to invest in a policy that specifies coverage of OEM parts.
Aftermarket for Cost-Effectiveness and Availability.
While paying a little extra to guarantee the use of OEM might worth it to maintain the value of the vehicle, most of the time using Aftermarket parts is a cost-effective and sometimes necessary piece of the car repair process. Not only do Aftermarket parts mean the cost of repairing your car (and therefore your insurance premiums) is much lower but they also influence the cost of OEM parts that have to compete. As well, practically speaking, Aftermarket parts might be the only one available for older vehicles or discontinued models.
There are many products available for vehicle insurance. Some policies even offer a combination of aftermarket parts and OEM parts, usually paying for the more expensive parts where safety features are involved. Whatever you choose, make sure you know the features of your policy so there are no surprises if you have to call up your agent to make a claim.