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Three Useful Auto Parts and Insurance Terms 
 
by Brian Melgar June 24, 2005

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.

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