Understanding OEM vs. Non-OEM Parts in Car Insurance Claims
When it comes to car repairs after an accident, many drivers wonder if their insurance company is required to use original equipment manufacturer (OEM) parts. The short answer is no, insurance companies are not obligated to use OEM parts exclusively. However, there are important regulations in place to protect consumers and ensure quality repairs.
California Regulations on Non-OEM Parts
In California, the use of non-OEM parts in car repairs is governed by the California Code of Regulations (CCR) Section 2695.8(g). This regulation sets forth specific requirements that insurance companies must follow when specifying the use of non-OEM parts:
Quality and safety standards: Non-OEM parts must be “at least equal to the original equipment manufacturer parts in terms of kind, quality, safety, fit, and performance”.
Disclosure requirements: Insurers must disclose the use of non-OEM parts to the consumer.
Warranty obligations: Insurance companies must warrant that non-OEM parts are of “like kind, quality, safety, fit, and performance as original equipment manufacturer replacement crash parts”.
Consumer Protections and Insurer Responsibilities
While insurers can specify the use of non-OEM parts, they have several responsibilities to ensure consumer protection:
Part identification: All replacement crash parts must carry permanent, non-removable identification to identify the manufacturer.
Modifications and costs: If modifications to non-OEM parts become necessary, insurers must cover those costs.
Quality assurance: If an insurer becomes aware that a non-OEM part is not equal in quality to the OEM part, they must immediately stop requiring its use and notify the distributor within 30 days.
Replacement responsibility: If a non-OEM part is found to be inferior, the insurer must pay for its removal and replacement with a compliant part.
Consumer Rights and Choices
As a consumer, you have certain rights when it comes to car repairs:
Choice of repair shop: Insurers cannot require you to use a specific repair shop or suggest a different shop once you’ve made your choice.
Part supply: Insurers cannot require you to supply parts for replacement.
Transparency: Any adjustments made to your claim due to betterment or depreciation must be clearly explained and itemized.
The Debate Over OEM vs. Non-OEM Parts
The use of non-OEM parts in car repairs remains a topic of debate in the insurance and automotive industries. Proponents argue that aftermarket parts provide a cost-effective alternative to expensive OEM parts, potentially keeping insurance premiums lower. Critics, however, raise concerns about the quality and safety of some aftermarket parts.
It’s important to note that these regulations do not imply that OEM parts are always superior or free from defects. The focus is on ensuring that when insurers require the use of non-OEM parts, those parts meet stringent quality and safety standards.