There have been a significant number of lawsuits, and a great deal written, about the propriety of insurance companies using either used or "after market parts" to repair an insured's vehicle. Used parts are taken from other vehicles, specifically, from junkyards or salvage yards. After market parts are replacement parts that have been manufactured by a supplier other than the vehicle manufacturer itself. While these parts are "new" in the sense that they haven't been used before, significant debate exists as to important issues such as their quality, their safety, their fit, the chance their use will void the manufacturer's vehicle warranty, as well as the possible lessening of the vehicle's overall value as a result of using after market parts.
The other method of repairing a vehicle is to use what are called "OEM" parts which are parts designed and manufactured by the "original equipment manufacturer," such as Ford, General Motors, Toyota, etc. As implied, these are parts that are specifically identical to the damaged components of your vehicle because they have been manufactured by your vehicle maker. To state the obvious concern for insurance companies, OEM parts are usually more expensive than after market parts, thereby motivating insurance companies to use after market parts to repair vehicles whenever they can do so.
The question then becomes "When can an insurance company legally and properly use after market parts to repair an insured's vehicle?" At present, there is no exact or defined answer to this question as the issue is still being litigated around the country as well as being debated by departments of insurance in various states. InsuranceAid.com, however, can offer some general guidelines and suggestions as follows:
1) Check to see if your insurance policy contains language which even allows your insurance company to use after market parts. In light of all the controversy that has arisen over this issue, most insurance companies have inserted language in their policies in recent years which specifically purports to allow the insurance company to use after market parts to repair a vehicle. While the inclusion of that type of language arguably helps the insurance company's position, it does not end the inquiry because the provision may not be enforceable in your state.
2) It is recommended at the outset of your claim that you advise your claim adjuster that you only want OEM parts used to repair your vehicle. While the claim adjuster might decline or ignore your request, you have at least made your "record" of requesting OEM parts which will place you in a much better light should problems develop down the road due to the use of after market parts. Make your request to use OEM parts early and in writing (keeping a copy of your letter).
3) Consider a compromise with the insurance company as to what kind of repair parts to use, such as agreeing to use after market parts for certain repairs for which it probably makes little difference compared to other repairs where OEM parts are much more important. For example, repairs to areas which are not visible or which are unrelated to safety may not be of as much concern to you as using an OEM quarter panel where look and fit is important.
The point is to choose your battles reasonably, giving in where you are comfortable doing so but aggressively pursuing your request for OEM parts where you feel it's necessary for reasons of safety or appearance.
4) One of the biggest issues is the age of your vehicle. It is much more reasonable to insist on OEM parts for a vehicle that's a year or two old as compared to a vehicle that is eight years old. Remember that the obligation of the insurance company is to put you in "pre-loss" condition. Therefore, the newer the vehicle, the more reasonable it is to insist on OEM parts to repair the vehicle.
5) Finally, to the extent the claim adjuster insists on using after market parts that you are not comfortable using, prepare and present the claim adjuster with alternative statements for the adjuster to sign along the line as follows:
On behalf of [insert insurance company name], I have refused to use OEM parts to repair one or more components of [insert your name]'s vehicle. In deciding to use parts other than OEM parts, [insert insurance company name] represents that the parts actually being used are of the same quality, integrity, safety, and fit as OEM parts and that should there be any problems, losses, injuries or damages occurring at any point after repairs are made where the use of after market parts has caused or contributed to those damages, injuries or losses, [insert insurance company name] agrees to bear any such losses or damages resulting from the use of after market parts.
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[name of claim adjuster]
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Date
On behalf of [insert insurance company name], I have refused to agree to the above, but I do acknowledge receiving this request for my signature from [insert your name] ______________________________
[name of claim adjuster]
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