Best Auto Insurance Companies That Do Not Force You to Use Refurbished Parts

Insurance companies tend to gravitate towards using refurbished and aftermarket parts to save on repair costs of vehicles. However, some insurance owners may not prefer using refurbished parts. They may need OEM parts to be used for their vehicles which is why it is essential to choose an auto insurance company that covers the integration of OEM parts and doesn't force you to use refurbished parts.

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Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance...

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Reviewed by Leslie Kasperowicz
Farmers CSR for 4 Years Leslie Kasperowicz

UPDATED: Apr 3, 2022

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What You Should Know

  • Insurance companies tend to use refurbished and aftermarket parts to save costs
  • However, original equipment manufacturer (OEM) parts are preferred over refurbished, recycled and aftermarket parts due to their quality, performance, and warranty
  • Not all companies offer coverage for OEM parts, so you can send a request to use OEM parts instead of aftermarket ones if your insurance company allows you to do so

The number of accidents caused by vehicles is rapidly increasing every day. If you are someone who meets in an accident and your car is severely damaged, one of the first things you can do is contact your auto insurance provider. Your insurance company will then assess the damage and provide a detailed estimate of all repairs.

Even though the insurance providers cover all of your losses and damages, they tend to employ several methods to not go overboard with the costs. One of these methods is using refurbished or aftermarket parts to replace your damaged vehicle parts.

However, some people may not like that and may expect the use of OEM parts. To avoid that, you need to know all about the different types of parts, if your insurance covers OEM parts, and the best auto insurance companies that don’t force you to use refurbished parts.

What are refurbished parts?

Refurbished parts are one of the most popular car parts that insurance companies use for auto claims. These are previously used parts that have been reconditioned, renovated, and refined. Since they are the ones returned to their manufacturers, they undergo rigorous testing, repairs, and a certification process before being sold for use again.

Every manufacturer of car parts has its own refurbishment criteria for these parts. They ensure that the refurbished parts adhere to those criteria and can be used reliably in cars with auto insurance claims.

Refurbished parts are classified into three grades, even though they are reliable. Grade A consists of parts that look new and show no significant signs of wear. Grade B has parts that show signs of use, but they are minimum. However, Grade C parts display obvious signs of rough use. These grades determine the cost of the refurbished parts categorized under them.

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What are OEM parts?

Most policyholders prefer using Original Equipment Manufacturer (OEM) parts produced by automobile manufacturers for specific vehicles. Since OEM parts are replicas of the original parts of your car used during its assembly, they fit perfectly.

Do all car insurance companies cover OEM parts?

Not all car insurance companies offer coverage for OEM parts. A significant portion of them only cover refurbished parts or aftermarket parts. Alternatively, some insurance companies may cover the cost of OEM parts only if the part is available in the different categories.

Best Auto Insurance Companies That Don’t Force You to Use Refurbished Parts

While several auto insurance companies may offer OEM parts coverage as an add-on, here are the best auto insurance companies that don’t force you to use refurbished parts.

Allstate Insurance Company

Allstate Insurance Company allows its policyholders to choose between using aftermarket parts or OEM parts, according to the customer’s requirement. The company also charges no additional cost for the use of OEM products as part of its “customer choice” policy.

American Family Insurance

This insurance company provides OEM coverage as an add-on option. Having car insurance with American Family Insurance can help you get original parts for covered repairs in case of a car accident.

GEICO

GEICO is one of the companies with a separate and unique policy for OEM parts. The company claims that it will cover up to 80% of the cost of the OEM parts required to repair your car post-accident. However, as the policyholder, you are required to pay the difference.

Liberty Mutual Insurance

Liberty Mutual Insurance provides optional coverage to its policy customers, allowing them to replace the damaged vehicle parts with ones that meet the highest quality requirements, including OEM parts. However, if OEM parts are not available, the company provides you with an estimate for using aftermarket or refurbished parts.

Amica Mutual Insurance

If you have an auto insurance policy with Amica Mutual Insurance, they will automatically put you in touch with appraisers and affiliated auto repair shops. They can then potentially include OEM parts in your car repair as required.

Berkshire Hathaway Automotive

This company provides comprehensive coverage for OEM parts as it maintains a detailed inventory of high-quality and genuine OEM parts. You can contact their staff for further inquiries depending on your requirements.

State Farm Auto Insurance

If a car accident occurs, your insured vehicle may require parts replacement. If you have a policy with State Farm, they use non-original equipment manufactured (non-OEM) parts. However, they also use recycled, new, and OEM Surplus parts whenever needed.

State Farm offers a somewhat inclusive coverage for OEM surplus and recycled parts for vehicles. In addition, it offers coverage for non-OEM parts and also includes new aftermarket parts that are properly certified and meet the required standards approved by State Farm.

Apart from these companies, several others also provide coverage for OEM parts, refurbished, and aftermarket parts. Depending on your vehicle’s potential requirement, it gives you a wide range of policy options and does not force you to get refurbished parts for your car. However, if you exclusively want OEM parts, you need to be willing to pay additional costs.

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Insurance Companies And Aftermarket Parts

As you take your car to the body shop to get it repaired after an accident, you need to ask your auto insurance company for fair compensation for repairs and replacement. Many policyholders do not know if their company uses OEM or aftermarket parts.

In some cases, once you submit your information to the company, you even lose control over all matters regarding repairs. Therefore, it is essential to know your insurance company’s process to request OEM parts.

Here are a few essential things you should know:

Company responsibilities

There are no specific laws in several states that make it obligatory for insurance companies to use OEM parts during vehicle repairs. In 31 states, insurers must provide disclosures to customers regarding repair estimates and the use of aftermarket parts. Thirteen states require the quality of the aftermarket parts to be on par with OEM parts. The other six states require the vehicle owner’s consent for using non-OEM replacement parts.

Know your rights

If you do not want the mechanic to use aftermarket parts for your vehicle repair, you have the right to ask your insurance provider to use OEM parts. The parameters for sanctioning the use of OEM parts vary from company to company. If your insurance company deems the cost and use of OEM parts to be unreasonable, they might deny your claim. However, if the damage is significant and the part is critical, they might accept your request.

Difference Between OEM Parts and Refurbished Parts

Repairing your vehicle after an accident is a challenge. No other parts can beat the performance and appeal of the original parts fitted during your car’s assembly. However, though several types of parts are used for repairs, some are preferred than others.

People mainly prefer using OEM parts to refurbished and aftermarket parts due to the following key reasons –

Impact on Vehicle Performance

Since aftermarket parts are made to fit every vehicle, they may not always be designed to fit your vehicle precisely and hence, may impact your vehicle’s performance. OEM parts are designed specifically to align with your vehicle’s performance and improve the efficiency of the car significantly.

Difference in Quality

The quality of aftermarket parts is comparatively lower than other parts as the original manufacturer does not make them. This will lead to greater wear and tear and more frequent replacement in the future.

Warranty

Aftermarket parts come without a warranty, similar to recycled and refurbished ones. On the other hand, OEM parts have the original warranty provided by manufacturers.

The Final Word

As a car owner, you do not know when an accident may occur. Therefore, it is best to be prepared and choose an auto insurance provider that will offer the best protection and coverage for your car. It is also advisable to conduct thorough research before purchasing insurance and choose one that provides extensive coverage for all different types of parts and does not force you to buy aftermarket parts.

References:

  1. https://www.repairerdrivennews.com/2018/05/09/allstate-tells-r-i-house-panel-customer-can-choose-oem-parts-with-no-additional-cost-to-them/
  2. https://www.amfam.com/insurance/car/coverages/oem-coverage
  3. https://www.libertymutual.com/vehicle/auto-insurance/coverage/original-parts-replacement

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