The
automobile insurance industry is engaged in several practices
which allow its agents to offer cheap insurance
while remaining profitable. These policies benefit insurers by
saving them money and are not always written in large print,
although they are legal and impact most policyholders who file
claims.
Many
auto insurers have established relationships with automobile
repair shops and prefer that any work done to claimant's
vehicles be done at one of these facilities. Drivers have the
right to take their vehicles
to any repair facility they choose. For those who choose to have
their repairs done at shops recommended by their insurers, many
state insurance codes require that these insurance companies
stand behind the quality of the replacement parts installed and
repairs done at their shops.
Auto
repair shops obtain crash replacement parts from outlets that
sell used auto parts, rebuilt or reconditioned parts
distributors, aftermarket crash parts manufacturers, and
original equipment manufacturers (OEM). To replace a
crash-damaged car part, most insurers will only pay for the cost
of the aftermarket crash part, which may be better, the same or
worse quality than the OEM part, but costs less. Law allows this
if the insurer
warrants that the parts are equal or better in every way to the
original equipment manufacturers crash replacement part. If the
vehicle owner wants to have OEM crash replacement parts
installed, he will have to make up the difference in cost.
There
are several valid reasons why an owner may want to insist on
original equipment manufacturer replacement parts. If your car
is still under warranty, replacing crash-damaged parts with
anything other than OEM crash replacement parts may void the
warranty. Similarly, if you are leasing a vehicle and authorize
a repair shop to use non-OEM crash replacement parts, the
leasing company may deduct the difference from your security
deposit. In these cases, it is important to make sure the type
of replacement parts are indicated on the repair invoice. If the
repair shop is not willing to do this, you may want to contact
the Board of Automotive Repair.
For
older cars, where OEM and aftermarket crash replacement parts
may be non-existent, or expensive, repair shops can install
used, reconditioned, or rebuilt parts. If the repair shop lets
the owner know that used crash replacement parts are an option,
the owner can save a considerable amount of money. In many
instances, the used part is either a cosmetic or a non-critical
one that is just as safe and reliable as an OEM or aftermarket
crash replacement part.
Whenever
you need to file an auto insurance claim, getting as much
information about your policy as possible will save you money,
and in some instances, prevent you from inadvertently voiding
your new car warranty. Whether you choose used car parts,
aftermarket crash replacement parts or OEM parts, have their
pros and cons in mind when you make your choice.
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