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Why Parts Choice Matters in Insurance Repairs
After a car accident, getting your vehicle repaired quickly and correctly is a top priority. Many drivers don’t realize that insurance companies influence the parts used during repairs.
The choice between OEM (original equipment manufacturer) and aftermarket parts can impact your car’s safety, resale value, and even how smoothly your insurance claim is processed.
Your car’s manufacturer makes OEM parts to match its original specifications. In contrast, third-party companies produce aftermarket parts—some of which may be lower in quality or not fit as well.
This is where the difference matters. Insurance companies often favor aftermarket parts to keep claim costs low, but policyholders should be aware of the potential downsides. That’s where Beem comes in—it helps you compare insurance policies to find ones that offer OEM coverage, protecting the quality of your repairs and the long-term value of your vehicle.
What Are OEM Parts?
OEM parts are components made by the same manufacturer that built your car. When rolled off the assembly line, they are identical to your vehicle’s parts.
1. Exact Fit: OEM parts fit perfectly without modifications because they’re made to factory specifications.
2. Quality Standards: These parts undergo the same rigorous testing as the original car components, ensuring safety and reliability.
3. Consistency: Every OEM part is the same as the last, so you know exactly what you’re getting.
4. Price: OEM parts are often more expensive than aftermarket options, so insurers may be reluctant to authorize them by default.
For drivers who care about keeping their car “like new,” OEM parts are often preferred.
Read related blog: Does Car Insurance Cover Aftermarket Parts?
What Are Aftermarket Parts?
Aftermarket parts are produced by independent companies, not the car’s original manufacturer. These parts can range from high-quality components that rival OEM standards to budget versions that barely meet minimum safety requirements.
1. Price Advantage: Aftermarket parts are usually cheaper, sometimes costing half as much as OEM equivalents.
2. Variety: With multiple manufacturers producing the same part, availability is wide, and you may even find performance-enhanced versions.
3. Quality Variance: While some aftermarket parts are excellent, others may not fit as well, wear out faster, or fail safety standards.
4. Insurance Preference: Insurers often specify aftermarket parts because they lower claim costs, regardless of whether your policy includes OEM coverage.
The aftermarket industry is important in keeping repair costs affordable, but quality inconsistency means drivers should proceed cautiously.
Insurance Rules on OEM vs Aftermarket Parts
Insurance companies don’t always leave the choice up to you. Here are some important rules and realities:
1. Default to Aftermarket: Many insurers automatically approve aftermarket parts unless you or your repair shop specifically request OEM parts.
2. State Regulations: Some states require insurers to disclose when they’re using aftermarket parts and allow you to refuse them—though that may come at an extra cost.
3. Policy Endorsements: Certain policies allow you to add an OEM parts endorsement, guaranteeing OEM replacements for covered repairs.
4. Age of Vehicle Matters: Some insurers limit OEM coverage to cars under 2–3 years old, assuming older vehicles don’t need manufacturer parts.
Understanding your policy language is critical. If OEM coverage matters to you, ensure it’s included before you file a claim.
Read related blog: Personal Loans For Auto Repair
Pros and Cons of OEM Parts
Advantages of OEM Parts
- Guaranteed Fit and Quality – No guesswork; parts match factory specifications exactly.
- Preserves Resale Value – Cars with OEM repairs often hold their value better, especially when inspected before resale.
- Safety Performance – In critical areas like airbags, crumple zones, or braking systems, OEM parts provide the reliability you expect.
Disadvantages of OEM Parts
- Higher Cost – OEM parts cost 50–100% more than aftermarket options.
- Availability Issues – OEM parts may be discontinued or on backorder for older models.
- Insurance Resistance – Insurers may push back or require you to cover the cost difference.
Pros and Cons of Aftermarket Parts
Advantages of Aftermarket Parts
- Affordability – Big savings compared to OEM, making repairs less expensive.
- Wider Availability – Aftermarket supply chains are broader, making finding parts easier.
- Good Enough for Some Repairs – Aftermarket options can be sufficient for non-critical parts like bumpers, mirrors, or cosmetic panels.
Disadvantages of Aftermarket Parts
- Quality Inconsistency – Not all aftermarket manufacturers meet OEM standards.
- Warranty Concerns – In some cases, aftermarket parts can void your car’s warranty if they cause damage.
- Lower Resale Value – Cars repaired with aftermarket parts may appraise lower.
Read related blog: Insurance for EVs: Battery Coverage, Repair Networks, and Discounts
How to Protect Repair Quality in Insurance Claims
If you want your vehicle restored to its original condition, here are the steps you can take:
1. Review Your Policy – Look for clauses on OEM vs aftermarket parts. Add an OEM endorsement if available.
2. Request OEM in Writing – When filing a claim, specify that you want OEM parts and keep written documentation.
3. Pay the Difference if Needed – Some policies only cover aftermarket; you can sometimes pay the gap for OEM.
4. Choose Repair Shops Wisely – Certified repair facilities are more likely to prioritize OEM quality.
5. Know Your Rights – In states with disclosure laws, inform you about any aftermarket use.
Being proactive before an accident is the best way to protect the repair quality.
Read related blog: Windshield Claims: Repair vs Replacement and Deductible Choices
Cost Comparison – OEM vs Aftermarket Repairs
The cost difference is often why insurers prefer aftermarket parts when settling claims. For example:
OEM Bumper: $600
Aftermarket Bumper: $300
That’s a 50% savings for the insurance company on just one repair. Multiply that figure across thousands of claims handled each year, and the financial incentive for insurers to choose aftermarket parts becomes crystal clear.
However, while this approach saves insurers money upfront, the long-term trade-offs for the driver can be much more significant:
1. Lower resale value if the repair quality is noticeable during inspections or when trading in your vehicle.
2. Potential safety risks if the aftermarket part doesn’t meet the same crash-test standards or performance benchmarks as the OEM.
3. Future repair costs if the aftermarket part wears out faster, corrodes, or doesn’t integrate as well with the car’s existing systems.
For these reasons, paying a slightly higher premium for an insurance policy that guarantees OEM coverage can be a smart investment. It may cost a little more each month, but it helps ensure your car retains its value, performs safely, and requires fewer repairs in the future.
Read related blog: Aftermarket Parts
How Beem Helps You Find OEM-Friendly Policies
Choosing the right insurer upfront can make all the difference. Beem makes the process easier by:
- Comparing Insurers: See which insurance companies offer OEM parts endorsements.
- Showing Cost Differences: Understand how much more you’ll pay for OEM coverage vs aftermarket-only policies.
- Protecting Repair Quality: Find policies prioritizing original parts so your car maintains value and safety.
Check car insurance quotes with Beem to find policies that protect repair quality.
FAQs – OEM vs Aftermarket Insurance Claims
Can I demand OEM parts after an accident?
It largely depends on the details of your insurance policy. Without an OEM endorsement, most insurers will only cover aftermarket parts because they are cheaper. However, you can sometimes request OEM replacements and pay the difference out of pocket if your policy does not cover them.
Do insurers have to tell me if aftermarket parts are used?
In many states, yes. Consumer protection laws require insurers to disclose when aftermarket parts are used in your repair. Some states even mandate that insurers allow you to refuse them, though you may be responsible for additional costs if you want OEM parts.
Are aftermarket parts always lower quality?
Not always. Some aftermarket manufacturers produce parts that meet or even exceed OEM standards. However, quality can vary widely from one brand to another. While some parts are reliable, others may not fit properly or last long, so choosing carefully matters.
Can I pay extra for OEM parts coverage?
Many insurance companies now offer OEM endorsements or add-ons for an additional premium. This option guarantees that repairs will use original manufacturer parts whenever possible. It’s worth considering if you want to preserve your car’s long-term value and ensure the highest repair quality.
Do OEM parts make my car safer after repairs?
OEM parts often provide better consistency and performance in critical safety systems—such as airbags, braking components, or structural reinforcements. While some aftermarket parts are acceptable for cosmetic fixes, using OEM parts for key safety features can give you greater peace of mind and help protect your passengers.
Conclusion – Choosing Parts That Protect Your Investment
The debate between OEM and aftermarket parts comes down to priorities:
- OEM parts ensure your car maintains its original quality, safety, and resale value.
- Aftermarket parts offer affordability and accessibility but may sacrifice consistency.
- The right choice depends on your car’s value, budget, and insurance policy terms.
Platforms like Beem help you compare insurers and find policies that guarantee OEM coverage, so you’re not left with unexpected compromises after an accident. Download the app now.
