Aftermarket parts are replacement parts that are not made by the original equipment manufacturer. Aftermarket parts are used to replace damaged parts in automobiles and other equipment, but their use may alter the coverage of an insured item. They are similar to generic pharmaceuticals in that they are cheaper than brand name medication, but are likely to have similar effectiveness.
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The Certified Automobile Parts Association (CAPA) issues guidelines for aftermarket parts. This association is the gold standard for aftermarket parts when it comes to safety due to its rigorous high standards and quality testing.
Repairing a damaged vehicle can be expensive, and motorists may request aftermarket parts to be used whenever possible because they tend to be less expensive than parts made by an original equipment manufacturer (OEM).
Depending on the language of the auto policy, allowing the repair shop to use aftermarket parts instead of OEM parts may allow the insurer to alter the policy's coverage going forward.
The National Association of Mutual Insurance Companies estimates that aftermarket parts cost as much as 50 percent below their OEM counterparts, saving car owners more than $2.2 billion annually on repairs. Aftermarket parts represent less costs for insurers and can potentially drive down overall auto insurance premiums. In other words, insurance companies like aftermarket parts as much as the budget-conscious consumer does because they don’t necessarily have to insure them.
When purchasing a new insurance policy or reviewing an existing one, aftermarket coverage is usually found in the custom parts and equipment provision. This part of the policy provides coverage for damage to aftermarket parts, though the coverage may have relatively low limits. In some cases, the insured may wish to purchase additional coverage on aftermarket parts, especially if upgrades were made to the vehicle that was not installed by the vehicle manufacturer.
The issue isn't whether high-quality aftermarket parts exist or are never the best option. Sometimes, they may actually be the only option. If a car is older, aftermarket parts may be the only choice for some repairs. While the quality of some aftermarket parts may be questionable, most parts are equal to, if not better than, OEM parts and are usually more readily available than OEM parts.
An argument often made against the use of aftermarket parts in repairs is that they can void warranties. However, the Magnuson-Moss Act, which governs warranty language, prohibits "tie-in sales," meaning using language to explicitly prescribe the use of a company's product. For example, a manufacturer cannot force a consumer to use their product by using the threat of a voided warranty. It also applies only to consumer products that are used for personal purposes or by families and households.
The amount of money that an insured driver may expect to receive for repairs to aftermarket parts and other upgrades depends on the insurer's replacement schedule. In many situations, the insurer will depreciate the original value of the aftermarket parts according to a formula, and will only cover the value that remains.
The formula used by the insurer calculates the actual cash value of the parts. If a claims adjuster determines that the vehicle is totaled, then the insured will only pay for the value of the insured loss. This typically does not include the loss of the upgrades.
Depending on the state, insurance regulations pertaining to the use of aftermarket parts differ. As of , 31 states required first-party insurers to disclose repair estimates with the use of non-OEM parts. Twenty states required the manufacturer of aftermarket parts to be identified while 13 states required aftermarket parts used in a repair to be of "like kind and quality" as OEM parts. Six states also required consent of the insured before use of aftermarket parts in repairs.
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When you take your car to the dealership, whether it’s for regular maintenance or repairs, you know that they will be putting Original Equipment Manufacturer (OEM) parts on your vehicle. However, have you thought about the parts that go on your car or truck when you are doing your own repairs? Or when you take your vehicle to an independent repair shop?
In these cases, you’re most likely going to get aftermarket auto parts. Perhaps you’re wondering what those are. We’re here to help answer your questions about aftermarket parts and help clarify why you want to use them.
Aftermarket parts are simply parts that are not made by the original car manufacturer. They are replacement parts that are manufactured by third-party companies, and most are designed and constructed to fit exactly the same and work as well or better than the OEM parts they replace.
In fact, the term “aftermarket” can be a bit confusing. In reality, the more accurate term, and the one we use, is “alternative part”. That’s because these non-OEM parts are just that – an alternative to using OEM parts for repairs on your vehicle.
No! Alternative parts are simply manufactured by someone other than the original car company. They aren’t counterfeit, and, in fact, it’s estimated that 80% of independent repair shops, i.e. those not owned by a car company or dealer, use alternative parts.
Not only are they not bad for your car, but they can also be better for it – and your wallet. Because some alternative parts perform better than the original OEM part, your car may perform even better with the replacement parts.
For exterior body parts, such as bumpers, fenders, hoods, mirrors, and headlamps, there are high-quality third-party manufacturers who build these parts to provide a good fit and appearance keeping your vehicle looking just as it did originally.
There are hundreds of aftermarket parts manufacturers, some who specialize in a small range of parts and others who manufacture nearly every part on a car or truck. Some of the names you would even recognize, but may not think of them as alternative parts manufacturers.
You’ve probably got aftermarket parts on your car right now, and haven’t even thought about it. Have you replaced your tires? Or your windshield wipers? Maybe your headlights were replaced after a scrape with another car, or you got a new bumper after a fender-bender. It’s highly likely that these replacements were alternative parts, and you didn’t think twice before putting them on your vehicle.
Aftermarket parts are well manufactured, as we’ve already said. But there are a number of other reasons to choose an alternative part over an OEM one:
In short, aftermarket parts can be a great choice for your vehicle, whether the part you are replacing is cosmetic or structural. Aftermarket parts offer choice, convenience, and peace of mind while saving you money and getting you back on the road quickly. Why use alternative parts? Because you have the choice.
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