Aftermarket Equipment

If your car is involved in an accident and requires replacement parts, it’s important for you to know the distinction between aftermarket parts and original manufacturer (OEM) parts.  Often, this difference is overlooked by insurance consumers—to their great detriment.  Arming yourself with this knowledge could save you a great deal of confusion and frustration, or sometimes even a bundle of money. 

• Original manufacturer (OEM) parts are produced by the same automobile manufacturer that produced your car and are literally the “original” part. 
• Aftermarket parts are replicated and sold by a company that’s not your car’s original manufacturer.
 

OEM vs. Aftermarket

The big difference between OEM and aftermarket parts is price.  Aftermarket parts usually run around fifty percent cheaper than their original counterparts.  Sometimes the quality difference between OEM and aftermarket parts is negligible.  (Think name-brand versus generic drugs.)  However, this is not always the case.  Two advantages OEM parts enjoy over aftermarket parts are safety and resale value:

Safety: OEM parts are more rigorously crash-tested by the Insurance Institute for Highway Safety (IIHS) and therefore provide a greater deal of reliability. 
Resale value: OEM parts help sustain a car’s resale value much more effectively than aftermarket parts.

Guidelines for Using Aftermarket Parts

Industry experts say it’s best to make use of aftermarket parts for cosmetic (non-safety related) changes to any car.  Also, aftermarket parts aren’t recommended for new vehicles or luxury vehicles that expect to maintain a high resale value.  In many cases, aftermarket parts can depreciate a car’s resale value drastically. 

The bottom line: If you’re driving a used car with no sentimental attachment and your main concern is value and price, then it’s usually fine to make use aftermarket parts. On the other hand, if your car is a high performance status symbol, your best bet is sticking with OEM parts. 

If you make the choice to utilize use non-OEM parts, just ensure that they’re certified by the Certified Automotive Parts Association (CAPA), which enforces universal standards for non-OEM parts used in collision repairs.

Insurance Companies and Aftermarket Parts

When buying an insurance policy for your auto, it’s very important to determine what the insurer’s stance on aftermarket parts is.  Some insurers use fine prin clauses requiring you to pay the difference between aftermarket and OEM out-of-pocket when opting for OEM replacement parts.  Make sure to ask about this up front so you won’t be surprised when it comes time to repair your car!

At the Body Shop

Finally, we recommend you demonstrate your knowledge of aftermarket vs. OEM parts to the body shop or mechanic you choose to repair your car.  It’s not uncommon for unethical businesses to take advantage of naïve customers by charging OEM price for aftermarket parts!

Want to compare insurance policy’s aftermarket parts clauses?  Visit our quotes page and get started. Aftermarket car insurance on parts is treated differently by different car insurance companies. Learn about aftermarket parts insurance.