QuestionQUESTION: Do I have to pay the difference between an OEM part and a non-OEM part if the insurance company paying for the damages is not my insurance company (i.e. I was not at fault and the insurance company footing the bill is that of the person who hit me)?
ANSWER: Hello,
Excellent question!
In theory, the vehicle has to be repaired to pre-accident condition otherwise you end up with diminished value of the vehicle.
In fact, years ago in Illinois, because State Farm was installing after market parts that were not the same quality of OEM, they were sued and it cost them close to a Billion dollars.
Many of these after market parts with a CAPA rating fit as good as the OEM. In the 80's and 90's however, the insurance company would figure on after market and the parts did not fit. In fact, it did no good to complain as the repair shop and it was demmanded that we at least try to get the fender or whatever part to fit. If we could not make the part fit, they eventually would figure on OEM.
I remember a customer demmanding an OEM dashboard for his Firebird. The insurance company authorized. The difference in price between the OEM dash and the after market was a couple hundred bucks. We ordered the dash from a dealer. Once we opened the GM box, we found the dash stamped ROC-Taiwan. In other words, one would pay the higher price for OEM and still get the Chinese junk, but for more money.
These days, very few OEM parts are made in America. If you look under your dash at the components, you will see: Made in Mexico, made in Canada, made in Taiwan.
Depending on the replacement part, there is little difference between OEM and after market. If you are speaking of a fender, if it fits good, I would not waste the additional money paying the OEM price.
The same goes for a bumper, grille etc.
Rob
---------- FOLLOW-UP ----------
QUESTION: Thanks for the reply. But specifically, can I make the insurance company of the person who hit me (Geico) pay for an OEM part?
AnswerHello,
This is a slippery slope. If your insurance company would not pay for an OEM part for the vehicle as per your specific policy language, GEICO will not have to either and you would have to pay the difference.
The problem you have here is that you have no leverage. Since you are not dealing with your insurance company, they can pretty much do what they want.
Its not fair, but the other insurance company has no fuduciary obligation to you.
The age of the vehicle makes a difference as well. Depending on the company, if the vehicle is over 1-2 years old, the only options for repair are LKQ (Like kind quality-used) or after market. All that is required is that you are made whole. Nothing better, nothing worse.
If the vehicle is over 1-2 years old, they look at the vehicle as though you have used it and does not require an OEM part.
The only time that you could get an OEM part without you paying the difference would be if the part is not available after market or used.
Please remember that I am giving general information based on 20 years of claims handling as a repair shop.
There may be more specifics as it relates to your situation that I have no way of knowing. I am not a lawyer, nor can I give legal advice.
Bottom line as a general answer to your specific question, the answer would nbe if you want OEM, you would have to pay the difference in cost.
Rob
