Auto Insurance Claims: LKQ v OEM, original equipment manufacturer, new saab

Question
My wife recently hit a deer with her 2006 Saab, which is leased. It is about a year old and has average milage on it.  The ins co appraiser wants to put LKQ parts into the repair, which is not acceptable to the Leasing Company. This leaves her about $2,000 short as she brought it to the Dealer to be repaired. Since the car is almost new, we felt using the Dealer was advisable. Do we have to accept this settlement, or can it be challenged ?
Your advise would be most welcome.  

Answer
Hi Ben,

First, to be sure everyone understands the abbreviations used by insurance companies and body shops.

OEM = Original Equipment Manufacturer
LKQ = Like Kind And Quality (Used or Salvage OEM parts)
A/M = Aftermarket (New but made by other than the vehicle manufacturer)

Sometimes the terms LKQ and A/M are incorrectly used interchangeably.  If the insurance company is utilizing LKQ, meaning Used or salvage parts, these would be acceptable to your leasing company because they are Original Saab parts from the same model year but are simply used parts. If, however the insurance company actually meant Aftermarket, this is unacceptable and you should insist on switching to LKQ if available or New Saab parts.

I hope this helps
Richard Hixenbaugh