Have you been and an automobile accident? Do you need to get your vehicle fixed at a body shop? Here are three terms that it is useful to know, both from the perspective of someone getting a vehicle fixed and from someone with auto insurance coverage.
A Short List of Useful Terms
Original Equipment Manufacturer (OEM) Parts
These are parts made for your vehicle by the company that made your vehicle. For example, if you drive a Ford and your fender is damaged in an accident, Ford makes fenders for your vehicle. Most body shops will lean toward using only OEM parts (except on very old vehicles). However, OEM parts are also the most expensive replacement parts available. As a result, your auto insurance policy may not cover them if your car is over a certain age or if it has traveled more than a certain number of miles.
These age/mileage restrictions vary from insurance company to insurance company, so you should ask about this issue before you buy a policy. Some insurance companies will no longer pay for OEM parts, if other parts are available, after one year or 12 thousand miles. Remember though that using non-OEM parts helps to keep your insurance premiums lower.
Used Parts
Body shops and insurance companies use several terms for these types. Sometimes you will here the term “like kind and quality (LKQ).” Other companies use the term recycled parts. Used parts are OEM parts that have been scavenged from a used vehicle. For example, the entire front end of a vehicle may have been destroyed in an accident. The vehicle is sent to a salvage yard.
After your accident, you need a right rear quarter panel. The salvage yard removes the quarter panel from the damaged vehicle and the shop attaches it to your vehicle. These parts are less expensive than OEM parts, and are sometimes the only parts available for older vehicles. In the body shop hierarchy, used parts fall below OEM parts, infinitely ahead of aftermarket parts.
Aftermarket Parts
Aftermarket parts are new parts that are manufactured by a company other than the one that made your vehicle. Many companies specialize, for example, in manufacturing a limited number of parts for a wide variety of vehicles. Aftermarket parts are much less expensive than OEM parts, and are sometimes called “generic parts” by body shops.
Most body shops do not like to use aftermarket parts for two main reasons. First, the markup is lower, so the body shop often makes less money. Second, many body shops argue that the parts do not fit as well. While there are rare cases where this is true, it is also true that the same issues occur when body shops try to fit OEM parts on older vehicles. If you ever have to pay for the entire cost of collision repair on your own, you will come to appreciate aftermarket parts.
Aftermarket Parts as Custom Parts
The term aftermarket parts can also refer to custom parts that are not available from the OEM manufacturer. For example, a company may make aftermarket tire rims that are larger than the available OEM rims. Sophisticated spoilers (the fin on the back of many sports cars) are another common aftermarket item.
Usually, insurance companies refer to these types of aftermarket parts as “custom parts.” Most insurance companies have strict limits on how much damage to custom parts they will cover in an auto accident. If you ask for a quote on auto insurance for your Honda Civic, then you add thousands of dollars in custom parts, your should not expect to have the entire cost of those parts covered by your basic collision or comprehensive coverage. Many insurance companies, however, will allow you to purchased addition customer parts coverage.