Car Insurance: Aftermarket, OEM & Used Parts Overview


CAPTION: Karp & Hart
>>>PERSONAL INJURY LAWYER PETER HART: This is Peter Hart from Karp and Hart and I’m here
today with Steve Baron from Crawford’s Auto Body about aftermarket parts and how they
effect the consumer.>>>STEVE BARON: An aftermarket part is a replica
of the original equiptment manufacturer, only OEM parts have been creash tested, only OEM
parts go through a lot of stringent checking and testing to make sure that they fit properly,
that they sustain impact properly, and that they’re safe parts for the consumer.
>>>PERSONAL INJURY LAWYER PETER HART: OEM again means…
>>>STEVE BARON: OEM means original equipment manufactuer. We have collision repair facilities
that are contracted with insurance companies, and because their contract stipulates…
>>>PERSONAL INJURY LAWYER PETER HART: I pulled out my insurance policy. It actually says
that you can use used parts. Does that mean they can go to a junk yard?
>>>STEVE BARON: Used salvage parts are a big problem in our industry because it’s another
way for the insurance carriew to save the cost of the repair.
>>>PERSONAL INJURY LAWYER PETER HART: What scares me Steve is dealing with wheels…
>>>STEVE BARON: This whole process all started because you had a wheel that was scratched
and somebody was good at repairing aluminum wheels, and then somebody sat back and said,
“I can make a living doing this,” so it’s gotten totally out of hand – because a reconditioned
wheel – there’s no way again to check the integrity of a reconditioned wheel.
>>>PERSONAL INJURY LAWYER PETER HART: So here at Crawford’s, here Steve, how do you handle
a situation where it comes into you where the insurance company says well we want you
to use a used part here to save us some money?>>STEVE BARON: We tell the appraiser that
we don’t use reconditioned wheels, and we also have the discussion with the owner of
the vehicle and the consumer, and let the consumer make the choice. If the consumer
choses to allow that reconditioned wheel to be installed on their car then we ask that
a waiver be signed.>>>PERSONAL INJURY LAWYER PETER HART: Does
the consumer have to pay extra money sometimes to use a brand new part?
>>>STEVE BARON: It all depends on who the insurance carrier is and what relationship
the consumer has with the insurance carrier – you have the right to have a new wheel be
put on your car. CAPTION: Having a good relationship with your
insurance carrier helps.>>>PERSONAL INJURY LAWYER PETER HART: You
have to read the insurance contract and look at the details and compare apples to apples
when picking a carrier.>>>STEVE BARON: If consumers read their insurance
policies, and understood the language within the policy, or took the policy to an attorney
and said, “What are my rights in this policy?” There’d be a major change over in the way
policies are written because consumers would have a better understanding of what they are
paying for. CAPTION: Crawford’s Auto Body

5 comments

These insurance adjusters make me sick by stating "its a new part" when its actually aftermarket or reconditioned and not certified as an OEM part. JUST CHEAP!

I wonder if we as consumers could afford the rate (premiums) Insurance companies would have to charge if they were required to use only OEM parts for all repairs? I know there is an organization called CAPA that certifies (kind of like a Good House Keeping seal) after market parts to meet the standards just like OEM parts. Like Mike states below, you might be able to buy that coverage… but it likely will cost more?

The Insurance Policy names what is being allowed and the State should ban this unless the aftermarket parts has been tested by certification.

I got bumped into and front bumper cover lower and upper grille damage . I want oem parts i think they will hold up better on a Toyota. Do i have the wrote to insist they only do it my way are do i have to settle for aftermarket crap?

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