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Can my insurance company require me to use certain types of auto repair?
Your insurance
company can't require you to use only certain kinds of auto repair
parts. However, if the insurance company's rates are based on a certain
type of part and you want something different, it can ask you to pay
the difference if the part you want is more expensive.
The parts most frequently damaged in auto accidents are "crash parts".
These are the sheet metal pieces that cover the engine and frame of the
car. There are two sources for crash parts: auto manufacturers, who
sell them under their own names, also known as original-equipment
manufacturers (OEMs), and generic or aftermarket crash parts suppliers.
Studies have demonstrated that these crash parts do not affect the
safety of the car. The development of a market in generic parts has
brought prices for car replacement parts down and can help consumers
save money.
In general, if generic parts have been ordered for the repair of your
car, this information must be disclosed. The car repair order should
state that the parts are not from the original manufacturer and the
warranty may be different. Many generic parts are made at the same
factories as OEM parts, and in fact very few OEM parts are actually
made by car makers.
Insurance companies that use generic parts guarantee the parts they
use. If the part doesn't fit properly, the insurance company will
generally put on an OEM part at no extra cost.
Some auto insurance companies offer their policyholders a choice
between OEM and generic repair parts as part of an endorsement
(addition to the policy that changes its terms and conditions) that
includes other choices as well. Some always specify OEM parts for
repairs and some use OEM parts for repairing recent model cars. A few
states require insurance companies to offer generic parts when they
exist and some may require OEM parts to be used.
Ask your insurance agent about your state and your insurance company's
claim settlement guidelines so that you'll know what to expect if your
car has to be repaired after an accident. |
© Insurance Information Institute, Inc. - ALL
RIGHTS RESERVED -
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