This is why it is wiser to invest in an insurance policy for your vehicle. It is a long-term investment that is a bit manageable and flexible as compared to sourcing cash in the event of an emergency such as being involved in an accident. When it comes to the type of automotive parts financed by insurance companies, it boils down to the insurance company that you choose. Insurance companies aim to keep their costs as low as possible.
There are basically three types of automotive car parts:
- The original manufacturer , otherwise simply referred to as (OEM) parts. They are made by the original car manufacturer and tend to be quite expensive.
- The Aftermarket automotive parts. These ones are made by a manufacturer other than the original manufacturer of the said car model. They are an imitative brand of the original but serve the intended purpose just as well.
- Used car parts. They are obtained from the junkyard from cars that have probably suffered damage and their owners prefer to sell the parts. There are dealers who buy these damaged vehicles and extract the parts to sell. This is definitely the cheapest option among the three.
It is important to consult with your insurance company on their most preferred type of automotive parts. Of course those that insure with the original car parts could be a bit more costly but will serve you in the long term. These parts are perfect fits because they are specific unlike the rest that you have to gamble with. Educate yourself on the basics of how things work.
Fun Facts
Insurance can cover OEM parts
- Many insurance policies cover Original Equipment Manufacturer (OEM) parts, ensuring high-quality replacements after an accident.
Aftermarket parts are a cost-saving option
- Insurance companies often recommend aftermarket parts for repairs, as they are usually 20–50% cheaper than OEM parts.
Some policies offer lifetime guarantees on repairs
- Certain insurance providers include lifetime guarantees on repairs, ensuring the durability of replaced car parts.
Insurers sometimes use recycled parts
- To promote sustainability and reduce costs, insurance companies may approve the use of recycled parts for vehicle repairs.
Labor costs are also covered
- Besides car parts, insurance typically covers labor costs for installing the parts, making the repair process more affordable.
Frequently Asked Questions
What car parts are usually covered by insurance?
- Insurance policies often cover parts like bumpers, headlights, windshields, and engine components damaged in accidents.
Does insurance always use OEM parts?
- Not always. Some policies specify the use of aftermarket or recycled parts unless OEM parts are specifically requested.
Can I choose the repair shop?
- Most insurance companies allow you to select a repair shop, but they may recommend partner shops for faster service.
Are there additional costs for premium parts?
- Yes, if you prefer premium or OEM parts, you may need to pay the difference not covered by your insurance policy.
How long do insurance-covered parts last?
- Parts financed by insurance are expected to meet industry standards. Many insurers provide warranties for added assurance.
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