What Insurance Doesn’t Tell You About Aftermarket vs. OEM Parts

One of the biggest sources of contention in auto repairs is the use of aftermarket parts versus OEM parts. After an accident, you might assume the damaged parts on your vehicle will be replaced with identical new ones from the manufacturer. What many insurance companies don’t openly tell you is that they often specify cheaper “aftermarket” parts in repair estimates to save money. This can have implications for your car’s performance, safety, and value. Let’s uncover the truth about aftermarket vs. OEM parts in insurance-funded repairs and what it means for you.

OEM vs. Aftermarket: What’s the Difference?

• OEM (Original Equipment Manufacturer) Parts: These are parts made by your vehicle’s manufacturer (or an authorized supplier) specifically for your car. Essentially, they’re the same as what originally came on the vehicle. OEM parts are engineered to match exact specifications, fit, materials, and performance of the original components.

• Aftermarket Parts: These are new replacement parts made by third-party companies that are not the original automaker. They are designed to fit multiple models or serve as generic equivalents of OEM parts. Aftermarket parts are widely available and usually cost significantly less than OEM. Note that aftermarket parts are new, not used – but they’re simply not from your car’s manufacturer. (Used parts from junkyards are a different category, often called recycled or salvage parts.)

Insurance companies often differentiate further:

• Aftermarket crash parts (exterior panels, bumpers, lights, etc.) vs. mechanical parts. Many policies explicitly allow aftermarket for cosmetic parts. Mechanical components (engine, suspension) are less commonly replaced with aftermarket in insurance claims, but it can happen.

• Recycled parts (OEM parts taken off wrecked vehicles) might also be used. These are OEM by origin but used, and insurers treat them similarly to aftermarket for cost purposes.

What insurers don’t always advertise is that they routinely include aftermarket or salvage parts in your estimate to cut costs. It’s often buried in the fine print of your policy: unless you’ve paid extra for an OEM parts endorsement, “functionally equivalent” aftermarket parts can be used for repairs. Many drivers only discover this when they see their estimate or when the body shop informs them that, say, an off-brand fender or headlamp assembly has been specified by the insurer.

Why Insurers Favor Aftermarket Parts (and Won’t Shout About It)

The simple reason is cost. Aftermarket parts generally cost much less than OEM parts, sometimes half the price. Insurers argue that using these parts helps keep overall repair costs (and therefore insurance premiums) down. From their perspective, if a non-OEM part restores the vehicle to “pre-loss condition”, why pay more for the logo on the box? In fact, insurance companies often claim aftermarket parts can be just as good as OEM – a point of debate we’ll address shortly.

Insurance policies often explicitly allow the use of aftermarket or used parts. It might say something like: “We may use replacement parts of like kind and quality which may not be made by the original manufacturer.” This gives them the contractual right to specify non-OEM parts. What they might not tell you upfront is that if you want OEM parts, you could have to pay the difference in cost. For example, if an OEM bumper costs $600 and an aftermarket one costs $300, the insurer will approve $300. If you insist on OEM, either the shop or you must cover that extra $300 unless you have special coverage.

Some insurers offer OEM Parts Coverage endorsements on policies (more common for new or leased vehicles), but many do not for regular cars. Progressive, for instance, notes it offers OEM coverage for motorcycles but not for cars. So, most everyday policyholders are in the situation where aftermarket parts are the default in a claim.

Insurance adjusters also may not volunteer this detail because, frankly, most customers aren’t aware of the difference or don’t think to ask. They focus on getting the claim handled cheaply but “successfully.” If the car looks fixed and drives fine, many people never know whether an aftermarket part was used. Thus, insurers don’t make it a point to say, “We’re using non-factory parts on your car,” unless directly questioned or if laws require disclosure (some states do require you be notified on the estimate if non-OEM parts are included).

Quality and Safety: The Big Debate

Now, are aftermarket parts truly equal to OEM? It depends on who you ask and the specific part in question:

• Insurance Industry View: Many insurers and aftermarket manufacturers insist that quality aftermarket parts meet OEM standards for fit and function. Reputable aftermarket companies may reverse-engineer parts to very tight tolerances. Some aftermarket parts are Certified by CAPA (Certified Automotive Parts Association), which tests for quality and fit. Insurers love to point to CAPA-certified parts as “just as good.” They’ll say using these parts does not compromise the repair.

• Automaker and Body Shop View: Automakers nearly universally recommend using OEM parts for safety and quality. They argue that parts are integral to the vehicle’s engineered crash performance and longevity. For instance, FCA (Chrysler/Jeep/Dodge) stated in a position letter that it “does NOT approve of the use of aftermarket or salvaged parts”, warning that non-OEM parts may not be built to the same design and could affect structural integrity and safety features. Similarly, other manufacturers like Honda, Toyota, etc., have issued statements highlighting that aftermarket body panels or suspension parts might not perform the same in a subsequent collision.

So there’s a tug-of-war: Insurers highlight cost and “good enough” functionality, while manufacturers and many independent collision experts emphasize fit, finish, and crash safety.

Key concerns with aftermarket parts include:

• Fit and Finish: Aftermarket parts sometimes don’t fit as precisely as OEM. Gaps might be slightly uneven, or mounting points not exact. A fender or bumper that’s a millimeter off can result in noticeable panel gaps or difficulties during installation. This can often be corrected with extra labor, but that extra labor time can eat into cost savings (something not all insurers want to pay for). Paint finish might also not adhere or match as well if the part’s material or primer differs from OEM.

• Material and Durability: The steel or plastic used might not have the same properties. Some aftermarket panels are thinner gauge metal. There are documented cases of aftermarket bumper reinforcements or hood latch mechanisms failing more easily than OEM in crash tests. While many aftermarket parts are fine for cosmetic items, critical components (think structural parts, brackets, suspension control arms) could pose safety issues if not built to OEM spec.

• Safety System Calibration: Modern cars have sensors (radar, cameras, etc.) embedded in bumpers, windshields, and mirrors. An OEM windshield, for example, has the exact clarity and thickness for a camera to “see” through properly. An aftermarket windshield might cause distortion that affects lane departure camera calibration. Similarly, an aftermarket bumper cover might not accommodate a sensor perfectly, or a radar may misbehave if the plastic density is different. This is an emerging issue with advanced driver assistance systems (ADAS).

• Warranty and Resale: Use of aftermarket parts might void certain manufacturer warranties on the repaired area. For example, if your car is fairly new and under warranty, and a non-OEM part causes a failure, the automaker could refuse coverage. Additionally, if you lease a vehicle, the lease contract often stipulates OEM parts only for repairs (because the leasing company doesn’t want diminished value). Resale value can also be affected – savvy buyers may notice non-OEM parts (they sometimes have identifiable markings) or lack of OEM labels on panels, which could reduce confidence in the repair.

  
  

Insurance companies don’t often volunteer these drawbacks. They maintain that any approved aftermarket part will be “of like kind and quality.” In fact, legally in many jurisdictions, a non-OEM part must be warranted by the insurance or part company to be equal in fit and performance to OEM. For example, some state laws require that aftermarket parts be at least equal in terms of fit, quality, performance, and warranty to OEM. But enforcement of that can be murky – what happens if an aftermarket part later rusts faster or rattles? It’s hard to prove and not something the insurer will likely inform you about up front.

What You Can Do as a Consumer

1. Read Your Policy and Ask Questions: Understand if your policy includes an OEM parts provision. If not, know that you can request OEM parts but might pay the difference. When your car is being estimated, ask the shop or adjuster, “Will OEM parts be used? If not, which parts are aftermarket or used?” Some states (like California) mandate that the estimate clearly label non-OEM parts and even that the customer be informed in writing. Even if not mandated in Ohio, you have the right to ask and know.

2. Consider Adding OEM Parts Coverage: If available from your insurer, it could be worthwhile especially for a newer car. This rider typically ensures any body repair will use OEM parts (some policies limit it to cars up to a certain age). It adds to your premium but can save headaches.

3. Work with a Reputable Body Shop: Independent, high-quality body shops often advocate on your behalf for OEM parts, especially for critical components. They can sometimes get an insurer to agree to OEM if they make a case that the aftermarket part is inferior or not available in a timely manner. Also, certified repair shops for specific brands (e.g., a shop certified by Honda or Audi) will insist on OEM to maintain certification – you may have to pay or negotiate for it, but they will inform you of the differences.

4. Know Your Rights in Ohio: Ohio doesn’t have extremely stringent aftermarket parts laws compared to some states, but you are entitled to be informed. Also, if your car is very new (often under 1-2 years old), many insurers will use OEM parts for those repairs because aftermarket may not exist yet or car owners expect it. After a couple of years, though, they’ll default to aftermarket/recycled.

5. Safety First: Insist on OEM for safety-related items. For example, anything to do with airbags, seat belts, crumple zone structural parts, suspension, etc. If the insurer balks, consider involving your vehicle’s dealer or manufacturer customer service – occasionally they can provide statements to help argue the case. You can also pay out of pocket for those specific OEM upgrades if necessary; while not ideal, peace of mind on critical components is priceless.

6. Aftermarket Isn’t Always Bad: It’s worth noting, not all aftermarket parts are junk. Some are made by the same suppliers that produce OEM parts (just without the car logo). There are instances where an aftermarket radiator or A/C condenser, for example, functions just as well as OEM for less cost. So use judgement – perhaps you’re okay with an aftermarket bracket or AC condenser, but you want an OEM fender because you’re concerned about fit/finish. You can sometimes negotiate item by item.

Insurance companies may not volunteer this information, but you now know: their priority is controlling costs, and that often means putting non-factory parts on your car. While these parts can be acceptable in many cases, be aware of the potential compromises. Don’t be afraid to speak up during the claims process about parts – it’s your car, and you deserve to have it repaired with parts that will keep it looking and performing as it should. A transparent conversation with your adjuster and repair shop can ensure you’re not caught off guard by a trunk full of aftermarket components when you pick up your “repaired” vehicle.