Types of parts that Insurance Companies use in Auto Claims

3 minutes read

Mostly when people are involved in a wreck, all they think is the speed of repair but not the parts that are going to be used to fix their cars. Spare parts shops have got a myriad of parts, but you should know the parts are in three categories namely equipment from the manufacturer, aftermarket parts, and used parts.

What kinds of parts are paid for by insurance?

It depends which insurance covers your car, the type of coverage and how the policy is set up. You should do window hopping of car parts, the spare part shop, and the insurance companies to understand the entire dynamics.

Original Equipment Manufacturer parts (OEM)

These are original pieces of equipment made by the car’s manufacturer. They are brand new, that is, they have never been used before, they go directly to your vehicle. Generally, they are more expensive than other alternatives, and mostly they take longer to hold because they are ordered from a single manufacturer.

Do insurance companies love OEM equipment?

Body repair shops love these parts because they don’t involve a lot when fixing. The parts are alike in color and the shops generate more income compared to other alternatives. But, what of insurance companies? Do they love OEM equipment for their clients?

Insurance companies are not huge fans for this equipment. The priority of insurance companies is to keep as low as they can. They only pay for OEM if no part is available or if you requested for OEM parts which you have to pay an extra coin in your policy.

Aftermarket parts

These parts are made by companies that are not the real car manufacturers. They are new, they have never been used before. Their specs are either close or even identical to OEM parts.

What do insurance companies think of aftermarket parts?

Repair shops don’t like the aftermarkets parts like OEM. This is because sometimes the parts need some hassle to fix. But good shops get the job done. How about insurance companies?

Insurance companies love these parts because they are cheaper compared to OEM, hence, lowering the cost. Were it not for these parts, OEM parts would have sent insurance rates soaring. Most insurance companies cover Aftermarket parts.

Used parts

Lots of cars are discarded on a daily basis for various reasons such as owners’ financial crises, engine troubles, and age. Parts of these cars are in good condition; they can be resold to repair other cars.

What do insurance companies think of used parts

Both repair shops and insurance love these parts. They fit nicely without a problem, and for insurance companies, they are cheaper.


Without mincing words, your vehicle is likely to be repaired with used or aftermarket parts when it comes to an insurance claim. This is common among insurance companies. If you don’t like the two then requests OEM parts in your policy.