After an accident your insurance company may recommend the use of a direct repair program (DRP) and offer the option of using generic replacement auto parts for the repair. You should know the difference with the options you are presented with.
Q: What are generic crash parts?
A: There are two types of crash parts: original equipment manufacturer (OEM) parts, which are supplied by auto manufacturers under their own name; and generic, or aftermarket, crash parts.
Generic parts are frequently produced in the same factory as the OEM parts, but may also be produced by independent manufacturers. They are generally limited to the cosmetic parts of the car that form the outside “skin” such as fenders, hoods and door panels, which are frequently damaged in an auto crash. Also included are the parts an average guy or gal can handle in their own garage; headlights, taillights and side mirrors.
Q: Are generic / aftermarket parts safe?
A: Yes. Studies show that these exterior generic parts do not compromise the safety of a vehicle. Auto insurers only want safe cars put back on the road.
Q: Do I have a choice of aftermarket or OEM parts?
A: Some auto insurance companies offer their policyholders a choice between generic and OEM parts. Some policies actually specify that only original equipment manufacturer parts must be used for repairs, while others require this only when repairing recent model cars. A few states mandate that insurance companies must offer generic parts when they exist. These requirements and options will be included in your auto policy—read it carefully and speak with an insurance professional to best understand your coverage.
Q: Can my insurance company require me to use certain types of auto repair parts?
A: No. Insurance companies cannot require a policyholder to use only certain kinds of auto repair parts. However, if the company’s rates are based on using a certain type of part, the insurer can ask you to pay the difference if the part you prefer is more expensive.
Q: What if the parts don't fit?
A: A generic part is no less likely to fit a vehicle than an OEM part. In the unlikely event that either type of part does not fit the vehicle, the insurance company will often pay to replace the part at no extra cost.
Q: What are the benefits of using aftermarket / generic parts?
A: There are many benefits to using generic parts. First, they are 26 to 50 percent less expensive than OEM parts and often have longer warranties. The introduction of aftermarket parts has also forced down the price of OEM parts by creating competition in the marketplace.
Q: Why is there such a cost difference between Aftermarket and OEM parts?
A: Aftermarket parts are considerably less expensive than OEM, everyone knows that. There are several reasons why. The "branding" is one the most expensive reasons; car manufactures parts are branded with their badge, weather it be Chevy, Ford or Dodge, to name a few. They all have stock holders to answer to. Car dealerships are held to a certain pricing markup for the parts they sell. You local dealership couldn't sell the parts for less even if they wanted to. Generally speaking, the manufacturer that built the original parts for the new vehicles coming off the assembly line are the same companies that now manufacture the aftermarket parts, minus the branding.
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