|
Inside this Article
Does Your Car
Insurance Only Cover Aftermarket Parts or Original Manufacturer
Parts?
|
Sponsored
Links
|
Auto accidents teach
drivers many expensive lessons about their insurance
policies, and why drivers should understand exactly
what they’re paying for — before an accident
happens.
For example, the cost
of knowing if your policy covers towing or rental
coverage can be hundreds of dollars if the driver is
not covered for such resources.
|
Furthermore, when it
comes to actually repairing your vehicle and returning
it to the original pre-accident condition, the costly
lesson becomes: Does your auto insurance only cover
aftermarket parts or original manufacturer (OEM)
parts? Demonstrated best in a repair estimate, the
difference between aftermarket parts and OEM parts is
generally cost alone, however, we promptly alert all
drivers: “buyer beware.” Comparing costs between
OEM and aftermarket parts is not always an
apples-to-apples comparison.
There are potential
hidden future costs and risks associated with a
vehicle’s insurance coverage, sustained resale
value, and even safety.
OEM parts are a
vehicle’s “original” part, and are literally
produced by the same auto manufacturer. Aftermarket
parts on the other hand, are a replicated part
manufactured by a company other than the original. As
aftermarket parts are an affordable alternative to the
expensive OEM parts, insurance companies will not
always reimburse 100% of the repair costs when OEM
parts are used. In fact, some carriers require the
policyholder to pay the difference between the OEM
part and the otherwise fully capable non-OEM
substitute part.
According to many car
owners, aftermarket parts do not necessarily restore
the car to its pre-accident condition. Some believe
that aftermarket parts decrease the resale value upon
trade-in or private resale. Even worse, for those who
lease their vehicles, using aftermarket parts can
complicate matters at the completion of their lease
contract. If the leased vehicle is returned with
aftermarket parts, the lessee faces the risk of not
returning the vehicle in the original condition.
An industry
rule-of-thumb is that for more expensive luxury
vehicles, it is recommended to maintain your
vehicle’s resale value with OEM parts, especially
considering the fact that car dealers monitor the
repair history of most vehicles. For those owners that
do not have aggressive resale objectives or have a car
that is not worth much, then aftermarket parts may be
the best route to go.
Understanding the
difference between aftermarket and OEM parts is often
overlooked when purchasing an insurance policy.
Don’t wait until an accident happens to learn what
your policy actually covers. Take this time to review
your insurance policy and use this knowledge to shop
for a policy that best covers your needs.
Sponsored
Links
Inside this Article
|
